A Peter Thiel-backed credit card company that caters to people with little to no credit just raised $30 million

peter thielPeter Thiel, co-founder of PayPal, delivers a speech during the evening session on the fourth day of the Republican National Convention on July 21, 2016 at the Quicken Loans Arena in Cleveland, Ohio.Alex Wong/Getty Images

  • Petal, a startup credit card company for people with little to no credit, raised $30 million in Series B funding.
  • Valar Ventures, Peter Thiel's New York-based venture capital fund, led the round.

Peter Thiel has doubled down on his investment in a credit card company geared towards people that might typically be turned down by traditional banks.

Petal raised $30 million in its Series B funding, which was led by Thiel's New York-based venture capital fund, Valar Ventures. Petal declined to disclose its valuation, but Business Insider understands the latest round increased the company's value.

The startup, which launched its first credit card last October, caters to people with little or no credit history.

Read more: Top venture investors from Bain and a16z tell us the 4 hottest fintech themes they're watching in 2019

As opposed to pulling a traditional credit report, Petal uses machine learning to analyze what it considers to be a person's complete digital financial record. This includes how much they make, save and spend over time, in addition to the bills they pay. Petal has carries no fees, with a credit limit of anywhere from $500 to $10,000.

New companies like Petal that are trying to make financial services available at more affordable costs have started to emerge in the last year or so. Top fin tech investors told Business Insider that they expect financial inclusion to be a major theme in 2019.

Valar also backs Brex, a high-flying startup that provides corporate credit cards to startups.

The fund participated in Petal's first round of funding for $13 million in January 2018. Petal also raised $34 million in debt financing in October 2018.

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