Credit Builder Petal Raises $35 Million, Spins Off Prism Data
hands holding cards

Credit Builder Petal Raises $35 Million, Spins Off Prism Data

The credit-building credit card FinTech Petal has announced a fresh round of funding and a big change to their business. First, the company disclosed that it’s raised $35 million. The new funding was led by Valar Ventures with Story Ventures, Core Innovation Capital, and RiverPark Ventures participating as well. Strategic investments from Synchrony and Samsung Next were also included. To date, Petal has now raised nearly $300 million in equity capital, including a $140 million Series D in January 2022.

With the announcement of new funding, Petal also revealed plans to spin off its data infrastructure and analytics subsidiary Prism Data. Known for creating the CashScore underwriting algorithm that Petal uses to approve new customers, Prism will now offer such open banking data solutions to a variety of businesses. According to Petal, using Prism’s technology, institutions, fellow FinTechs, and other businesses will be able to move beyond traditional FICO scores and make better credit decisions overall.

In a press release announcing the spin-off of Prism Data, the CEO and co-founder of both Prism and Petal Jason Rosen explained, “The first wave of fintech was about inventing new approaches. We’ve seen this explosion in activity with companies testing out new models, technologies, and financial products.”

Rosen continued. “Not every new experiment works. But for breakthrough technologies that have proven effective, like the cash flow underwriting we’ve developed at Petal and Prism Data, the time has come to expand to the mainstream. This has profound implications for financial inclusion, and we couldn’t be more excited to partner with forward-thinking industry leaders like Synchrony and Samsung to drive true innovation at scale.”

Also commenting on the shift, Synchrony EVP and Chief Strategy Corporate Development Officer Trish Mosconi stated, “At Synchrony, we have a deep history of using data to make informed lending decisions and create faster, seamless personalized customer experiences. The Prism Data platform is innovative in providing differentiated consumer insights, enabling financial institutions to make more data-driven decisions. We look forward to exploring partnerships with Petal and Prism Data to help improve access to credit.”

My Thoughts:

Petal’s move to spin off Prism Data follows a now well-established trend in FinTech that finds firms pivoting from consumer-facing services to playing “behind the scenes” or B2B roles. This has been seen recently in companies such as Aspiration (moving from an environmentally-conscious consumer credit card toward offering carbon credits to businesses) and Bakkt (which sunsetted its own consumer crypto platform to power other integrated offerings).

Of course, the difference here is that Petal is seemingly sticking with its current products while also peddling its proprietary underwriting model to others. Ultimately, this hybrid approach could pay off for the firm — and apparently already has given the fresh investment. In turn, both Petal and Prism are now FinTechs to watch in the future.


Kyle Burbank

Head Writer ~ Fioney
Kyle is the head writer for Fioney. He is a personal finance nerd, constantly looking for new apps and services to test and incorporate into his own financial game plan. In addition to his role at Fioney, he's written for other publications including Born2Invest, Lifehack, and Laughing Place, as well as his own site Money@30. He also creates personal finance and travel-related videos for Fioney's YouTube channel, which has garnered more than 2 million views. Currently, Kyle resides in Springfield, Missouri with his wife of 10 years. Together, they enjoy traveling (including visiting Disney Parks around the world), dining, and playing with their dog Rigby.

Other Articles by Kyle Burbank

"The Unbanking of America" Book Review

In her new book " The Unbanking of America: How the New Middle Class Survives" author Lisa Servon looks at everything from the payday loan industry to FinTech while also discussing the changing economics of the middle class.
Charlie and SpeedBump logos

Charlie Introduces SpeedBump Fraud Protection Feature

A FinTech that helps prevent adults from falling victim to scams and fraud is adding a new feature to further that cause. About SpeedBump: Today, Charlie announced the launch of its SpeedBump feature. This tool combines alerts, pauses, and real-time education to help protect older adults who may be vulnerable to scams and fraud. SpeedBump may be activated when Charlie customers take certain actions, such as adding a payee, making...
AMEX card in the middle of a restaurant table full of food

American Express to Acquire Tock from Squarespace

American Express is expanding its dining platform with not one but two acquisitions. About the acquisitions: Today, Amex announced that it will be acquiring the restaurant reservation service Tock from Squarespace (who purchased the company in 2021). The purchase is expected to be for $400 million in cash but is subject to closing conditions, customary adjustments, and regulatory approval. Amex also notes that, as part of the deal with Squarespace,...
The "Email" field is empty, you must enter some text to proceed.The text you entered in the "Email" field appears to be invalid, please edit it and try again
Get the Latest News Delivered to Your Inbox

A Guide to Building Credit and Increasing Your Credit Scores

When it comes to credit, there’s some good news. The average credit score in the United States has been steadily rising in recent years, coming in at 715 in 2023. That may be because, today, consumers not only have more ways to access their credit reports and scores than ever before but also because there are an increasing number of options that Americans have for building credit in the first...

2024 SoFi Checking and Savings Review

Ever since I started taking an interest in the FinTech sector, one company whose name I’ve seen pop up over and over again is SoFi. Lately it seems as though that theme has been sent into overdrive as the company has not only become a household name thanks to its stadium naming rights deal but also because of the company’s continued product expansions. The most interesting development in my mind...
Brim logo

Brim Financial Raises $85 Million as It Eyes Global Expansion

Toronto-based FinTech infrastructure startup Brim Financial has announced a new funding round. About the round: Brim has revealed an $85 million round. The Series C was led by EDC Investments while new investor Vistara Growth and returning investors White Owl Group, Epic Ventures, and Zions Bank also participated. To date, the company has now raised $110 million including a Series B in 2021. According to Brim, the latest funding will...
Chase Freedom Flex card

Chase Reveals Q2 2024 Freedom 5%(+) Bonus Categories

Chase has announced its bonus category picks for the second quarter of 2024 — including some interesting twists. About the categories: As April approaches, Chase has revealed what categories Freedom and Freedom Flex cardholders can earn bonuses on. From April 1st through June 30th, customers can earn 5% (or more) in three categories:, Hotels, and Restaurants. Similar to how Chase embraced a "New Year, New Me" theme last quarter,...
Rent Day

Bilt Announces Home Collection Deal for May 2024 Rent Day

For May's Rent Day, Bilt is offering a deal that will allow members to decrease their rent bill while also adding to their home decor. About the Home Collection offer: Bilt has crafted a unique Rent Day offer for May 2024. Through the 1st, when Bilt members redeem their points toward rent payments, they'll receive the same number of points to be used toward Bilt Home Collection items. To take...