Petal, a digital lender that offers credit cards to individuals with poor credit history, is reportedly up for sale, according to sources at private equity and venture companies, as doubts loom over the company's survival. Petal was valued at USD 800 million in January 2022 and has selected Goldman Sachs to broker a deal.

The company has distributed Petal credit cards to over 400,000 customers and reported annualized revenue of USD 80 million last year. Nevertheless, the company faces challenges due to elevated interest rates, resulting in increased borrowing costs for its consumers.

According to sources, Petal is not at risk of closure even if it fails to find a potential buyer, as it still retains cash amounting to USD 55 million from the funds raised this year . Moreover, it has been reported that the company has access to additional funds through its existing loan agreements and can pursue further support from current investors.

Analyst QuickTake: The announcement of Petal's sale follows the company's separation from Prism Data , its subsidiary focused on B2B data infrastructure and analytics, six months ago. Furthermore, the company has successfully secured over USD 250 million in funds through a combination of debt and equity this year.