Employee financial wellness start-up Rain lands $116m in equity and debt
Employee financial wellness start-up Rain has raised $116 million in funding, made up of $66 million in equity and $50 million in debt.
Rain raises $66m in equity and $50m in debt
The Series A equity round was led by QED Investors and Invus Opportunities and saw participation from firms including WndrCo, Tribe Capital and Dreamers VC. The debt facility has been arranged by Sound Point Capital Management.
The Los Angeles-based fintech says the funding will help fuel its ongoing US expansion and plans to invest the cash in technology and infrastructure, marketing and building its workforce.
The Rain platform allows workers to access their pay “on demand”. Known as “income streaming”, employees can access their pay shortly after completing a shift, rather than waiting for payday.
Rain integrates with existing payroll and timekeeping software used by many middle market and enterprise businesses and automates a payroll deduction flow.
Employees pay a small fee each time they withdraw their earned wages. To promote responsible use, employees are unable to withdraw more than 50% of gross earned wages per pay period.
Rain co-founder and CEO Alex Bradford says the platform “improves individual financial wellbeing and boosts morale while giving employers a valuable tool for recruiting and retaining workers during a tight labour market”.
The company launched its Instant Pay app in early 2020 and claims to have grown its user and client base more than 20% per month over the past 30 months.
To date, Rain has disbursed more than $150 million in earned wages.
