Rain is a startup that provides comprehensive earned wage access (EWA) apps for employers, coupled with financial risk features such as overdraft alerts and spending trends, raising $75 million in the all-share Series B round.
The round was led by Prosus at a monetary valuation of $340 million. Co-founder Alex Bradford, co-founder of co-founder Alex Bradford, told TechCrunch specifically that Rain plans to use new funds to help it add credit cards and save products on its roster.
In the U.S., about 35% of households earn less than $50,000 and their salary is a salary, up from 32% in 2019 Report (PDF) Bank of America published in October.
Salary to box office crowds increase with age and can increase anywhere in the United States, although the report shows they are the highest in the South. It’s hard to wait for a biweekly salary when the bill expires any day.
The EWA platform allows employees to get a portion of their salary as early as possible, while small fees may be less plundering than other methods of capturing cash. Like a payday loan on a high interest day.
rain Designed to distinguish its existence and attract employers who want to help employees get paid between them by automated pay.
“Because we have connected with all the major payroll and timing systems, and we have built automation tools that make it very easy for us to get onto the employer, so through onboarding, the employer has very little manual work and once we go online, there is almost no daily work or paid time or paid time for the period of payment.”
It said the Los Angeles-based startup, founded in 2019, has loaded more than 2.5 million employees and has allocated more than $2 billion in salary. Rain App says it can also help employers retain employees.
The rainfall targets medium-sized market and corporate customers, with more than 300 employees. It charges the equivalent of ATM fees, with an average of about $3 per transaction, for instant transactions. However, employees also have access to the free ACH option that attributes their account to the next working day.
However, the startup doesn’t want to be another EWA application in a crowded market. Bradford said it already offers a financial education portal, one-on-one financial coaching, and free tax and refund services through tax solutions provider April.
Such services outside the EWA actually account for 70% of their monthly adoption rate, with EWA at 30%.
“For us, as time goes by, success is showing more and more, because they are saving ewa more and more now,” Bradford said.
Series B funding sees participation from Nextalia Ventures and Spark Growth Ventures, including Rain’s existing investors, including QED, Invus Mospure, etc., will help startups go beyond simple EWA applications.
In the third quarter, the startup plans to launch an EWA credit card with dynamic credit limits based on verified wages earned by the employer’s salary system.
The startup is also developing products that will launch later this year, which makes it easier for employees to use their Health Savings Account (HSA) by allowing them to spend on any card and get reimbursed. Additionally, it will bring in savings accounts later this year and features including autosaves and rewards.
Rain’s funding has emerged among signs of a more favorable environment in the fintech ecosystem in recent years, growing almost flatly in recent years. Funds, including Rib Capital More funds are being raised, including latticedespite the $575 million raised, its valuation has dropped – indicating that the fintech environment is mixed.
PitderBook data shared with TechCrunch, global fintech companies’ venture capital fell 45% year-on-year to $50 billion, with similar funding levels last year. To date, global fintech startups have raised $13.1 billion. However, the average transaction size increased to 20% from $18.27 million in 2024 to $2.194 million. In the EWA space, Venture Funding also grew 19% year-on-year to $569 million last year.
Unlike employer-integrated platforms (such as Rain), employee-side EWA platforms such as ENARIN have faced Regulators crackdown on alleged “predatory” loans In the past few months. Rain’s approach allows savings and financial awareness to provide automation with the employer’s EWA, which helps it excel.
“Building a more comprehensive platform for financial health products will certainly help us achieve our mission, and it is ultimately a path to helping millions of people toward financial freedom,” Bradford said.
The startup has 175 employees and also expands its listing by building sales teams and investing in sales support and marketing and channel partnerships. It also plans to invest more in tools to increase more convenience for employers who manage services.
In 2023, Rain raised $116 million in Series A financing, which includes $66 million in stock and $50 million in debt.
