Rain, an employer-integrated earned wage access (EWA) and financial wellness app, announced it has raised $75 million in Series B equity funding. Prosus led the round, which also included Nextalia Ventures, Spark Growth Ventures, and existing investors, including QED, Invus Opportunities, and others.
Since its founding in 2019, Rain has seen high growth. This funding round will help Rain scale its go-to-market machine and build new employee financial wellness solutions and employer solutions.
Most American households live paycheck to paycheck, with many living week to week or day to day. And traditional pay cycles often leave workers waiting for their wages while facing immediate financial obligations, increasing reliance on predatory products such as overdraft fees, payday loans, and high-interest credit cards.
Rain addresses this problem by partnering with thousands of employers and empowering millions of workers to access their wages on-demand in a safe and responsible way, with multiple free options. And Rain reduces employee financial stress and has already saved workers hundreds of millions of dollars by helping them avoid costly financial alternatives.
Rain also integrates with its employer partners’ HR software systems. And Rain is integrated with nearly every major payroll and timekeeping system in the US, making it simple for employers to implement and seamless for employees to use. Plus, these integrations provide a fast and reliable user experience while also reducing the operational burden on HR and payroll teams.
After adopting Rain, employers have seen measurable results, including spikes in job applications (+200%), productivity (20 more worked hours per month), and employee retention (+46% less likely to leave after 6 months). Rain’s customer base spans various industries, including healthcare, retail, hospitality, manufacturing, and quick-service restaurants.
Along with EWA, Rain offers other products including a deposit account and debit card, an overdraft fee avoider, a bill reducer, a tax filing tool, a financial education portal, in-app 1×1 financial coaching, an AI-based financial wellness and job support agent, an off-cycle payments tool, and an employee rewards tool. Later this year, the company plans to launch innovative savings and credit products and an employer messaging tool.
Since launching in 2019, Rain has onboarded over 2.5 million employees and distributed over $2 billion in earned wages.
KEY QUOTES:
“Rain is building the employee engagement app of the future centered around financial wellness. Rain makes it easy for employers to give their employees the freedom to access and manage their earnings on their own terms. Thanks to the support from Prosus, Nextalia and other investors participating in this round, Rain is in a strong position to scale to thousands of new employers and millions of new employees across the U.S.”
- Alex Bradford, Co-Founder and CEO at Rain
“The relationship between work and life is evolving, and independent financial flexibility is becoming essential for employees. Rain provides a solution that empowers workers, helps businesses thrive, and plays a fundamental role in this shift in workforce dynamics. We believe in their vision and are excited to be part of this journey as they continue to grow their business.”
- Ali Esfahani, Head of Americas Investments at Prosus
“Rain has shown tremendous growth in terms of both acquiring well-known brands as customers and significantly expanding its impact on employees with a continually developing suite of powerful financial wellbeing tools beyond EWA.”
- Attilio Mazzilli, Co-Head Nextalia Ventures
