Petal, a fintech firm that provides credit cards to consumers with thin credit history, has received a $300m debt facility from investment bank Jefferies.
With the infusion, Petal intends to support the growth of its card programme.
In a blog post, the fintech firm said: “We couldn’t be more excited about the next stage of the journey.
“We’re looking forward to expanding the availability of the Petal card and building new ways to improve Petal members’ financial lives.
Jefferies also invested in Petal’s last year funding round, which raised $34m and also involved the participation of Silicon Valley Bank.
Earlier this year, Petal secured $30m in funding.
Currently, the firm has a user base of 50,000. Sixty-six percent of Petal users, according to the firm, are either Gen Z or millennials.
The blog post added: “We designed the Petal card experience to help users financially succeed and learn to use credit responsibly. This includes providing Petal cardmembers with tools to help them budget, and added transparency into the cost of borrowing money before they carry a balance.
“The data shows it’s working: When it’s time to pay their bill, the percentage of Petal members who pay equal to or more than their statement balance each month is 24% higher than the industry average.”