Topics
Latest
AI
Amazon
Image Credits:Paul Yeung / Bloomberg / Getty Images
Apps
Biotech & Health
Climate
Image Credits:Paul Yeung / Bloomberg / Getty Images
Cloud Computing
Commerce
Crypto
Image Credits:Rain
Enterprise
EVs
Fintech
Rain co-founders Jen Terrell (Left) and Alex BradFord (Right)Image Credits:Rain
Fundraising
Gadgets
Gaming
Government & Policy
computer hardware
Layoffs
Media & Entertainment
Meta
Microsoft
concealment
Robotics
protection
Social
Space
Startups
TikTok
transport
speculation
More from TechCrunch
Events
Startup Battlefield
StrictlyVC
Podcasts
Videos
Partner Content
TechCrunch Brand Studio
Crunchboard
Contact Us
Rain , a inauguration offer an employer - integrate earned wage access ( EWA ) app coupled with financial - wellness features like overdraft alerts and outlay trends , has raised $ 75 million in an all - fairness Series B round .
The round was led by Prosus at a post - money valuation of $ 340 million . pelting plans to apply the new fund to help it tally credit carte and saving products to its roster , co - founder CEO Alex Bradford , only enjoin TechCrunch .
Around 35 % of household in the U.S. with an yearly income below $ 50,000 are living paycheck to payroll check , up from 32 % in 2019 , per areport(PDF ) by Bank of America issue in October .
payroll check - to - paycheck populations rear with long time and can be anywhere in the U.S. , though this report indicates they are gamy in the South . semiweekly paychecks can be hard to hold off for when bills are due any day of the month .
EWA platform leave employees to get a portion of their paychecks too soon with a small fee and can be less predatory than other get - cash - now methods , like high-pitched - interest payday loanword .
Rainaims to differentiate its presence and appeal employer who want to serve employee get at earned earnings between their paychecks with automation .
“ Because we are connected to all the major paysheet and timekeeping arrangement , and we built automated tooling that makes it extremely loose for us to onboard employer , there is very minimum manual workplace for employers through onboarding , and once we go live , there is hardly any work day to day or pay point to pay period for them , ” suppose Bradford .
Join us at TechCrunch Sessions: AI
Exhibit at TechCrunch Sessions: AI
The Los Angeles - based startup , founded in 2019 , has onboarded over 2.5 million employees and distributed over $ 2 billion in make wages , it enjoin . The Rain app read it helps employer retain employees , too .
Rain aim mid - grocery and enterprise customers with over 300 employees . It charges a fee equivalent to an ATM fee , an average of around $ 3 per dealings , for an instant dealing . However , employees can also use the free ACH selection , which credits their account up to the next business day .
However , the startup does not need to be another EWA app in the crowded mart . It already offers a financial breeding hepatic portal vein , one on one financial coaching , and a free tax filing and refund service via the tax answer provider april , Bradford say .
Such services beyond EWA actually account for 70 % of its monthly adoption pace , Bradford says , with the EWA at 30 % .
“ For us , what success attend like over fourth dimension is that the user ask EWA less and less because they are now saving more and more , ” Bradford said .
The Series B funding , which saw involvement from Nextalia Ventures and Spark Growth Ventures , and Rain ’s live investors let in QED , Invus Opportunities , and others , will help the startup expand further beyond a simple EWA app .
In Q3 , the startup plans to launch an EWA - secure credit card with a dynamic deferred payment limit based on the verified earned wages it has from the employer payroll system .
The startup is also working on a intersection to be turn over out afterwards this year that make it easier for employee to use their Health Saving Account ( HSA ) by letting them spend on any card and get recoup . Furthermore , it will bring saving report later on this year with features including automobile - save and rewards .
pelting ’s financial backing comes amid sign of a more favorable environment for a fintech ecosystem that had seen nearly flat growth in recent year . Funds includingRibbit Capitalare raising more money , while startups includingPlaid , despite raise a decent - sized round of $ 575 million , have seen a decline in their rating — indicating a mixed environment in fintech .
speculation financing in global fintech companionship declined 45 % year - over - year to $ 50 billion in 2023 , with a standardized support level recorded last class , per PitchBook data shared with TechCrunch . In 2025 to date , $ 13.1 billion has been raised by global fintech startup . However , the modal heap size of it has increased 20 % year - over - twelvemonth to $ 21.94 million from $ 18.27 million in 2024 . Specifically in the EWA quad , venture funding also turn 19 % yr - over - class to $ 569 million last year .
Unlike employer - integrated platform like Rain , employee - side EWA platforms such as Earnin have facedcrackdowns from regulators over allegedly “ predatory ” loansfor the last few months . Rain ’s approach to enabling savings and financial sentience alongside providing EWA from the employer ’s side with automated features helps it standout .
“ build a more comprehensive political platform of financial health products will certainly aid us realize our mission , which at long last is to help 1000000 of people get on the track to fiscal freedom , ” Bradford stated .
The startup , with 175 employee , is also scaling its go - to - market by build a gross revenue squad and investments in sale enablement and marketing and channel partnerships . It also be after to invest more in tooling to impart more comfort station for employer manage their avail .
In 2023 , Rain raised a $ 116 million Series A funding round that comprise $ 66 million equity and $ 50 million in debt .
