Credit fintech Petal agrees sale to Empower
Empower Finance has agreed to buy US credit fintech Petal and closed the acquisition of Philippines-based Cashalo.
Founded in 2016, Empower uses real-time cash flow, other nontraditional data, and machine learning to underwrite credit for underserved consumers no the US and Mexico.
The deal for Petal – terms of which have not been disclosed – gives Empower a foothold in the US credit card sector. Petal also uses non-traditional data to offer a Visa credit card to people even if they’ve never used credit before.
Reports emerged last November that the company had put itself up for sale amid Walls Street concerns about its ability to survive.
Meanwhile, Cashalo give Empower a route into the credit market in Southeast Asia.
“In both companies, we found a shared commitment to harnessing technology and rich alternative data to unlock financial opportunity for more people who merit our consideration,” says Warren Hogarth, CEO, Empower.
