New companies that offer employer integrated wage access (EWA) apps with financial communications such as excess withdrawal and expenditure trends raised $ 75 million in the All-Equity Series B round.
The round was led by Prosus with $ 340 million after money. Rain plans to use new funds to add credit cards and to save the product in Alex Bradford, CEO of co -founder Alex Bradford.
About 35%of US households with an annual income of less than $ 50,000 are paid for salaries in accordance with Bank of America’s report (PDF) published in October from 32%in 2019.
Representative check population, which receives salaries, increases with age and can be anywhere in the United States, but this report indicates the highest in the south. Bibles, salaries can be difficult to wait until the bill is closed every month.
Through the EWA platform, employees can get some of the salary early at a low cost and may be weaker than other Get-Cash-NOW methods, such as high salary loans.
Rain aims to differentiate his existence, automate, help employee approach to employee approach, and attract employers to self -employment.
Bradford said, “We have a minimum manual work for employers through on boarding because we have established automated tooling that can be easily boarded by employers because we are connected to all major salary and time maintenance systems, and we have little routine or payment period in our lives.”
Startups based in Los Angeles, founded in 2019, have boarded more than 2.5 million employees and distributed more than $ 2 billion. Rain App says it helps to maintain employment -driven staff.
Rain is aimed at mid markets and corporate customers with more than 300 employees. For instant transactions, you will be charged an ATM fee, an average of $ 3 per transaction. However, employees can also use a free ACH option that recognizes the account up to the next work.
But startups don’t want to be another EWA app in a crowded market. BRADFORD has already provided free tax return and refund services through financial education portals, one -on -one financial coaching and tax solution providers.
Bradford says that these services other than EWA actually account for 70%of the monthly adoption rate, EWA says 30%.
Bradford said, “The success of us over time is that the user needs to decrease because the user is getting more and more EWA.
Rain’s existing investors, including Series B Funding, QED, and Invus Opportunities, who have seen the participation of Nextalia Ventures and Spark Growth Ventures, will help startups to expand beyond simple EWA apps.
In the third quarter, startup plans to launch an EWA-safe credit card with a dynamic credit limit based on the proven income wage held by the employer salary system.
Startups are also studying products that will be released later this year, allowing employees to use Health Saving Account (HSA) more easily so that employees can spend and receive repayment. In addition, we will provide a savings account as features including Auto-Save and Rewards later this year.
Rain’s funds are caused by signs of more favorable environments for almost flat fintech ecosystems in recent years. Funds, including Ribbit Capital, are raising more money, and even though they have raised $ 555 million of grid scale, new companies, including grid patterns, have a decrease in evaluation, indicating the mixing environment of fintech.
The venture funds of the Global Fintech company decreased by $ 50 billion in 2023, down 45% year -on -year, and the level of financing was recorded last year according to the pitch book data shared with Techcrunch. By 2025, Global Fintech Startup raised $ 13.1 billion. However, the average trading volume increased from $ 127 million in 2024 to $ 299.4 million, up 20% from the previous year. In particular, in the EWA universe, venture funds increased by 19% last year, an increase of $ 560 million.
Unlike employer integrated platforms such as Rain, employees such as Earnin have faced a regulatory agency for “plundering” loans over the past few months. Rain’s approach, which provides EWA as an automated feature on the employees, is helpful to stand out.
Bradford said, “Constructing a more comprehensive financial wellness product platform will help us realize our mission, ultimately helps millions of people can go to financial freedom.
A new company with 175 employees is expanding its market by establishing a sales team and investing in sales support, marketing and channel partnerships. We also plan to invest more in tooling to add more convenience to employers who manage the service.
In 2023, Rain raised $ 66 million in funds and $ 50 million debt, raising $ 166 million in financing rounds.
