Rain, the pioneering financial wellness platform known for empowering companies to offer employees enhanced control over their finances, has successfully secured $300m in financing from Clear Haven Capital Management.
This strategic move provides Rain with a substantial credit facility, significantly enhancing its capacity to service its expanding customer base.
Rain offers a solution that addresses the critical issue of traditional pay cycles hindering savings and financial well-being. In the United States alone, it is estimated that people spend over $170bn waiting for their next paycheck. Rain’s platform mitigates this issue by providing employees with real-time access to their hard-earned wages, eliminating the typical wait for payday.
The recent infusion of $300m from Clear Haven will enable Rain to scale its services, offering this vital benefit to a broader array of employers interested in adopting earned wage access (EWA) as a part of their employee benefits package.
Fred Choquette, Chief Operating Officer at Rain, emphasised the significance of this funding, stating, “With this $300 million in funding from Clear Haven, we’ll expand our reach and further fulfill our mission to empower all Americans to live the life that they can afford to live, protected from predatory fees and lending products.
“By giving employees access to their hard-earned wages when they need them the most, we’re alleviating the reliance on financial products that further push them into debt. We’re committed to further empowering Americans on their journey to true financial freedom.”
In addition to its pay-on-demand feature, which operates similarly to an ATM charge, Rain offers a suite of financial wellness tools and adheres to stringent compliance standards. The platform is designed to integrate seamlessly with existing payroll systems, requiring minimal data for operation, and is offered free of charge to employers. This approach not only simplifies the implementation of EWA benefits but also supports employers in boosting retention, engagement, and productivity among their workforce. Rain’s efforts have already yielded significant savings for its users, avoiding over $51m in overdraft fees and payday loan interest, further underscoring its commitment to financial wellness.
Mark Simmer, Managing Partner at Clear Haven Capital Management, echoed this sentiment, expressing pride in the partnership and the collective mission to transform the financial wellness landscape. “Haven is proud to commit $300m in funding to Rain as part of its dedication to empowering both employers and employees to thrive in challenging economic circumstances and embark on a more resilient financial wellness journey.
“Rain’s unwavering mission to transform the financial wellness landscape by granting employees access to their earned wages perfectly aligns with Clear Haven’s vision for a more inclusive and equitable financial future. We are excited to collaborate with Rain, working together to empower employees and redefine traditional concepts of financial wellness.”
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