Empower Finance strikes deal to buy Petal with Cashalo acquisition completed

Acquisition by Empower Finance:
- Empower Finance, a US-based credit underwriter, has entered into a definitive agreement to acquire Petal, a credit card and financial tech enterprise.
Deal Details:
- The acquisition of Petal by Empower Finance is set to be finalized later this quarter for an undisclosed sum.
Broadening Product Offerings:
- This acquisition will expand Empower’s product offerings to include the credit card category within the US market.
Petal’s Background:
- Petal, founded in 2016, offers access to Visa credit cards without requiring a credit score, using open banking data for credit qualification.
Synergy in Credit Risk Assessment:
- Both Empower and Petal utilize non-traditional methods for assessing credit risk, leveraging machine learning to analyze real-time cash flow data during underwriting.
Integration Strategy:
- Empower intends to integrate Petal and its previously acquired company, Cashalo, into its network, citing strategic footholds in the US credit card sector and the Southeast Asian credit market.
Commentary from Leadership:
- Warren Hogarth, CEO of Empower, emphasizes that the acquisitions will bring new capabilities to alleviate credit insecurity globally.
- Jason Rosen, co-founder of Petal, believes the combined strengths of Empower and Petal will accelerate progress in closing the equity gap in credit.