On-Demand Employee Pay Platform Rain Raises $66 Million On-Demand Employee Pay Platform Rain Raises $66 Million
Rain app

On-Demand Employee Pay Platform Rain Raises $66 Million

A startup that helps employees access their earned wages more quickly and easily has just raised some major funds of its own. This week, Rain announced that it has raised $66 million in equity. The Series A was led by QED Investors and Invus Opportunities, while WndrCo, Tribe Capital, and Dreamers VC also participated.

In addition to the equity round, Rain raised an additional $50 million via debt facility, arranged by Sound Point Capital Management. Rain says that the fresh capital from both of these mechanisms will help support their continued expansion and allow them to further invest in technology, infrastructure, employee/employer experience, and marketing.

Rain is a platform that allows employers to offer on-demand access to their wages, enabling them to claim a portion of their pay shortly after completing their shifts. While the service is free for employers to offer, employees may need to pay a fee (which Rain compares to an ATM charge) when withdrawals are made. The platform also notes that employees are only able to withdraw up to 50% of their gross earned wages per pay period.

According to Rain, more than half a million employees currently have access to the service, including those working for major hotel chains such as Hilton and Marriott, as well fast food companies McDonald’s, Burger King, and Taco Bell among many other businesses. The company states that businesses that use Rain see an average of 80% reduction in employee turnover.

Speaking to the idea behind Rain, the company’s CEO and co-founder Alex Bradford stated, “We built Rain to empower people, especially hourly workers, to take control of their finances and eliminate the need for predatory payday loans. With this investment, we will continue to improve our platform and deliver a powerful employee benefit that improves individual financial wellbeing and boosts morale while giving employers a valuable tool for recruiting and retaining workers during a tight labor market.”

QED Investors co-founder and managing partner Nigel Morris said of the firm’s investment in Rain, “Half of America cannot get access to reasonably priced, transparent financial services products. This results in unnecessary stress, anxiety, and hardship for millions of people. Companies like Rain are helping to even the playing field by giving hourly workers the ability to access the money they earn faster, providing them with peace of mind, saving them millions in fees, and improving their overall financial health.”

Although Rain isn’t the only startup to offer such a service, it’s clear that there is demand for a platform that can help employees fill in the financial gaps between pay days. In turn, it’s not a surprise that Rain has managed to claim such an impressive Series A. Given their existing roster of clients and this new influx of capital, it seems that Rain well be well poised to make it pour in the months ahead.

The "Email" field is empty, you must enter some text to proceed.The text you entered in the "Email" field appears to be invalid, please edit it and try again
Get the Latest News Delivered to Your Inbox

FedEx Announces Winners of 11th Annual 2023 Small Business Grant Contest

Nearly three months after the entry period ended, FedEx has announced the winners of its 11th annual Small Business Grant Content. This year's event saw more than $300,000 in funds going to a variety of small businesses across the nation. Last month, the company revealed 100 finalists, with that list now being narrowed down to just 10 winners. This year's grand prize winners included KindVR, The Cupcake Collection, Up In...
Summer app

Student Loan Benefit FinTech Summer Raises $6 Million

For years, student debt has been one of the most talked about financial topics. What's more, while the debt itself has become a major part of many Americans' lives, discussion of student loans has become political due to efforts to forgive certain loan repayments. However, while we wait for resolution on that front, a FinTech that brings student debt benefit solutions to employers and consumers has raised a new round...
H-E-B and Central Market  credit cards

Imprint Launches Credit Cards from H-E-B and Central Market 

The FinTech Imprint is partnering with the popular Texas-based grocery chain H-E-B for a pair of new rewards credit cards. This week saw the launch of the H-E-B Visa Signature Credit Card as well as the Central Market Visa Signature Credit Card. With these two (nearly identical) options, customers will be able to earn rewards on groceries and beyond. First, both versions of the card earn up to 5% back on select...
Melissa Urban holding a Ness card

Health and Wellness Rewards Card Ness Partners with Whole30

In recent years, several unique rewards cards have come to market. These include offerings from FinTech startups as well as brands looking to do something special for their loyal fans. On that note, a recently-announced rewards credit card offering is now working with a popular brand to introduce new benefits for customers. This week, the Ness Card (which is issued by The Bank of Missouri) unveiled a new partnership with...
Choice Privileges Select Card

Choice Hotels, Wells Fargo Debut Choice Privileges Select Card

With spring well underway and the summer travel season now just around the corner, Choice Hotels and Wells Fargo have unveiled their latest co-branded credit card offering. Today, the two companies announced the Choice Privileges Select Mastercard. Carrying an annual fee of $95, this card will serve as the premium option in the hotel brand's new lineup. Looking at the Choice Privileges Select, it offers a mix of rewards categories....