Rain, a start-up offering an employer-integrated earned wage access (EWA) app coupled with financial-wellness features like overdraft notifies and costs trends, has raised $75 million in an all-equity Series B round.The round was led by Prosus at a post-money assessment of $340 million.
Rain strategies to utilize the brand-new funds to help it include charge card and saving items to its lineup, co-founder CEO Alex Bradford, solely informs A Technology News Room.Around 35% of homes in the U.S.
with a yearly income below $50,000 are living income to income, up from 32% in 2019, per a report (PDF) by Bank of America published in October.
Paycheck-to-paycheck populations increase with age and can be throughout the U.S., though this report shows they are greatest in the South.
Biweekly incomes can be hard to wait for when costs are due any day of the month.EWA platforms permit employees to get a portion of their incomes early with a little cost and can be less predatory than other get-cash-now approaches, like high-interest payday loans.Rain intends to differentiate its existence and bring in employers who want to help workers gain access to made earnings in between their paychecks with automation.Because we are linked to all the major payroll and timekeeping systems, and we constructed automated tooling that makes it incredibly easy for us to onboard employers, there is very minimal manual labor for employers through onboarding, and when we go live, there is hardly any work day to day or pay period to pay period for them, said Bradford.The Los Angeles-based startup, founded in 2019, has onboarded over 2.5 million workers and dispersed over $2 billion in earned salaries, it states.
The Rain app says it helps employers keep workers, too.Image Credits: RainRain targets mid-market and business clients with over 300 workers.
It charges a fee equivalent to an ATM charge, approximately around $3 per transaction, for an instantaneous transaction.
Nevertheless, staff members can likewise utilize the totally free ACH alternative, which credits their account as much as the next business day.However, the start-up does not want to be another EWA app in the crowded market.
It currently provides a monetary education portal, one on one financial training, and a totally free tax filing and refund service via the tax solution company april, Bradford says.Such services beyond EWA in fact account for 70% of its monthly adoption rate, Bradford states, with the EWA at 30%.
For us, what success looks like in time is that the user requires EWA less and less because they are now saving increasingly more, Bradford said.The Series B funding, which saw participation from Nextalia Ventures and Spark Growth Ventures, and Rains existing investors consisting of QED, Invus Opportunities, and others, will assist the startup expand further beyond a basic EWA app.Rain co-founders Jen Terrell (Left) and Alex BradFord (Right)Image Credits: RainIn Q3, the start-up plans to launch an EWA-secured credit card with a vibrant credit limit based upon the verified made earnings it has from the company payroll systems.
The startup is also dealing with an item to be presented later on this year that makes it easier for staff members to use their Health Saving Account (HSA) by letting them spend on any card and get repaid.
It will bring saving accounts later on this year with functions including auto-save and rewards.Rains funding comes amidst indications of a more favorable environment for a fintech community that had seen nearly flat growth in current years.
Funds consisting of Ribbit Capital are raising more cash, while startups including Plaid, in spite of raising a decent-sized round of $575 million, have seen a decline in their appraisal showing a combined environment in fintech.Venture financing in international fintech business decreased 45% year-over-year to $50 billion in 2023, with a similar funding level taped last year, per PitchBook data shared with A Technology News Room.
In 2025 to date, $13.1 billion has actually been raised by worldwide fintech startups.
The average offer size has actually increased 20% year-over-year to $21.94 million from $18.27 million in 2024.
Specifically in the EWA area, endeavor funding also grew 19% year-over-year to $569 million last year.Unlike employer-integrated platforms like Rain, employee-side EWA platforms such as Earnin have actually faced crackdowns from regulators over apparently predatory loans for the last few months.
Rains approach to enabling cost savings and monetary awareness alongside offering EWA from the employers side with automated functions helps it standout.Building a more detailed platform of monetary health products will definitely help us recognize our objective, which ultimately is to help countless individuals get on the course to monetary freedom, Bradford stated.The start-up, with 175 workers, is also scaling its go-to-market by developing a sales group and investments in sales enablement and marketing and channel collaborations.
It also plans to invest more in tooling to include more benefit for employers managing their services.In 2023, Rain raised a $116 million Series A financing round that consisted of $66 million equity and $50 million in debt.