US credit card fintech Petal reportedly eyeing potential sale
New York-based credit card start-up Petal, which secured a $200 million debt facility and $20 million equity funding just three months ago, is reportedly on the lookout for a buyer.
Petal is reportedly exploring a sale
According to a report by Fortune, five sources from the banking, private equity and venture capital sectors say the start-up may be at risk of going out of business if it doesn’t find a suitor.
However, other sources told Fortune that the likelihood of that happening is low, saying that if the fintech can’t find a buyer, it still has some funding leftover from this year and could also receive more funding from keen investors if needed.
One source has also suggested that the company has already received multiple offers for acquisition.
Goldman Sachs has reportedly been roped in to advise Petal on the potential sale. FinTech Futures has reached out to Petal, who declined to comment.
One of the sources tells Fortune that the credit card fintech has made some staff cuts this year, with 20% of its workforce axed in June to leave the firm with about 100 employees.
Back in August, following its fresh funding, Petal said it had approved nearly 400,000 people for its credit card, with 100,000 being approved in the last year alone.
