Rain, an employee financial wellness start-up, has raised $115m in funding, encompassing $66m in equity and $50m in debt.
According to a report from Finsmes, QED Investors and Invus Opportunities led the Series A with participation from firms including WndrCo, Tribe Capital, and Dreamers VC. The debt facility was arranged by Sound Point Capital Management, LP.
Led by CEO Alex Bradford, Rain provides earned wage access and other financial wellness benefits to hundreds of thousands of employees of middle market and enterprise companies across the US.
Through the platform, employers can offer workers on-demand pay or earned wage access. This benefit, also known as “income streaming,” allows workers to access their pay shortly after completing a shift instead of waiting for a payday.
The service is offered free to employers who provide it to their employees as a voluntary benefit. 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 integrates with existing payroll and timekeeping software used by many middle market and enterprise businesses and automates a payroll deduction flow with the vast majority of systems. It is an integrated marketplace partner of ADP, UKG, and SAP, and is SAP’s first and main earned wage access partner globally.
Last year, Paywatch, a Malaysian earned wage access service provider, raised $9m in a pre-Series A funding round.
Founded in 2020, Paywatch enables employees to access their earnings instantly, rather than waiting until payday, similar to Rain.
The company works with major banks to provide its users with the necessary tools to improve their financial wellbeing, which the company said leads to greater employee retention and productivity.
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