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Earned wage entry platform Rain has raised $116 million in Sequence A funding.
The spherical consisted of $66 million in fairness and $50 million in debt financing.
Rain has disbursed greater than $150 million in earned wages to its customers, and grown its consumer and consumer base by 20% up to now 30 months.
Rain, an earned wage entry platform, has secured $116 million in mixed fairness and debt funding. The Sequence A spherical consisted of $66 million in fairness financing and $50 million in debt, and was led by QED Buyers and Invus Alternatives.
“We constructed Rain to empower folks, particularly hourly employees, to take management of their funds and eradicate the necessity for predatory loans,” Rain CEO Alex Bradford mentioned. “With this funding, we’ll proceed to enhance our platform and ship a strong worker profit that improves particular person monetary wellbeing and boosts morale whereas giving employers a beneficial software for recruiting and retaining employees throughout a good labor market.”
Additionally taking part within the Sequence A have been WndrCo, Tribe Capital, and Dreamers VC. The debt facility was offered by Sound Level Capital Administration. Rain will use the funding to gas enlargement within the U.S., in addition to make investments in expertise, infrastructure, advertising and marketing, and worker and employer expertise.
Rain’s platform allows employers to supply employees on-demand pay or entry to earned wages. The corporate refers back to the profit as “earnings streaming,” and permits staff to obtain their pay after finishing a shift relatively than ready for a payday which may be weeks away. Employees are charged a small price which Rain equates to an “ATM cost” when withdrawing earned wages. Moreover, employees can not withdraw greater than 50% of their gross earned wages per pay interval. Earned wage entry has emerged as a various to payday loans, which regularly cost exorbitant charges of as much as 400% APR. Rain famous that employers utilizing its app have skilled a discount in worker turnover of as much as 80%.
Based in 2019, Rain is headquartered in Santa Monica, California. The corporate launched its On the spot Pay app in 2020, and has grown its consumer and consumer base by greater than 20% over the previous 30 months. Rain has disbursed greater than $150 million in earned wages to its customers, serving to them keep away from “tens of tens of millions in predatory charges” the corporate famous in a press release.
Photograph by Pew Nguyen
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