Rain, a Los Angeles-based fintech startup, has raised $75 million in an all-equity Series B round to scale its platform that allows employees to access earned wages between paychecks.
The round was led by Prosus, valuing the company at $340 million post-money. Additional investors included Nextalia Ventures, Spark Growth Ventures, and existing backers such as QED and Invus Opportunities.
Founded in 2019, Rain has now facilitated over $2 billion in early wage payments for 2.5 million employees and is aiming to go well beyond earned wage access (EWA) into credit, savings, and financial wellness tools.
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Rethinking the Paycheck-to-Paycheck Cycle
As more than 35% of U.S. households earning under $50K annually live paycheck to paycheck, Rain’s service offers a lifeline. Its EWA feature allows employees to access wages they’ve already earned before their payday, at a fee of around $3 per transaction, similar to an ATM charge. A free ACH option is also available for next-day transfers.
But CEO Alex Bradford says EWA is just a starting point. Rain is building out a comprehensive financial wellness platform including:
- A credit card with dynamic limits based on earned wages
- Health Savings Account (HSA) integrations with instant reimbursements
- Savings accounts with features like auto-save and rewards
- One-on-one financial coaching, tax filing support, and budgeting tools
“Our mission is to reduce reliance on EWA by helping people save more and build long-term financial health,” said Bradford.
Strategic Differentiation in a Crowded Market
While other EWA apps like Earnin have drawn regulatory scrutiny for predatory practices, Rain’s model is integrated directly with employer payroll and timekeeping systems, reducing compliance risks and manual work for HR departments.
The startup targets mid-market and enterprise clients with over 300 employees and offers fast, automated onboarding thanks to its integrations with all major payroll systems.
“We’ve built tooling that allows employers to onboard with almost no lift. Once live, there’s virtually no ongoing maintenance for them,” Bradford added.
Scaling Growth and Market Reach
Rain previously raised $116 million in a Series A round in 2023 (split between equity and debt). With the new Series B funds, the company plans to:
- Grow its sales and marketing teams
- Expand channel partnerships
- Invest in product development and employer tooling
The funding also reflects renewed momentum in fintech after years of flat growth. While overall fintech investment dropped 45% YoY to $50B in 2023, EWA startups actually saw a 19% rise in funding to $569M. Rain appears to be riding that wave—and pushing to define the next phase of EWA as part of a holistic employee financial wellness strategy.
