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Earned wage entry platform Rain has raised $116 million in Sequence A funding.
The spherical consisted of $66 million in fairness and $50 million in debt financing.
Rain has disbursed greater than $150 million in earned wages to its customers, and grown its person and consumer base by 20% previously 30 months.
Rain, an earned wage entry platform, has secured $116 million in mixed fairness and debt funding. The Sequence A spherical consisted of $66 million in fairness financing and $50 million in debt, and was led by QED Traders and Invus Alternatives.
“We constructed Rain to empower folks, particularly hourly staff, to take management of their funds and eradicate the necessity for predatory loans,” Rain CEO Alex Bradford stated. “With this funding, we are going to proceed to enhance our platform and ship a strong worker profit that improves particular person monetary wellbeing and boosts morale whereas giving employers a precious device for recruiting and retaining staff throughout a decent labor market.”
Additionally collaborating within the Sequence A have been WndrCo, Tribe Capital, and Dreamers VC. The debt facility was offered by Sound Level Capital Administration. Rain will use the funding to gas enlargement within the U.S., in addition to make investments in expertise, infrastructure, advertising, and worker and employer expertise.
Rain’s platform permits employers to supply staff on-demand pay or entry to earned wages. The corporate refers back to the profit as “earnings streaming,” and permits staff to obtain their pay after finishing a shift reasonably than ready for a payday which may be weeks away. Staff are charged a small price which Rain equates to an “ATM cost” when withdrawing earned wages. Moreover, staff can’t withdraw greater than 50% of their gross earned wages per pay interval. Earned wage entry has emerged as a various to payday loans, which frequently cost exorbitant charges of as much as 400% APR. Rain famous that employers utilizing its app have skilled a discount in worker turnover of as much as 80%.
Based in 2019, Rain is headquartered in Santa Monica, California. The corporate launched its Prompt Pay app in 2020, and has grown its person and consumer base by greater than 20% over the previous 30 months. Rain has disbursed greater than $150 million in earned wages to its customers, serving to them keep away from “tens of thousands and thousands in predatory charges” the corporate famous in a press release.
Photograph by Pew Nguyen
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