The platform Rain for accessing earned wages has finished its Series A round, which included $66 million in equity and $50 million in debt.
The round was led by QED Investors and Invus Opportunities. WndrCo, Tribe Capital, and Dreamers VC also took part. Sound Point Capital Management was in charge of setting up the debt facility.
Employers can give workers access to their earned wages or pay them when they want to. The service is free for employers who want to offer it as a benefit to their workers. When employees take out their earned wages, they pay a small fee similar to what an ATM charges, and they can never take out more than 50% of their gross earned wages per pay period.
Employers with more than 500,000 employees use the service now. These employers include large healthcare systems, senior living groups, hotel franchises like Hilton and Marriott, and fast food franchises like McDonald’s, Burger King, and Taco Bell.
Rain says that employers have seen a decrease in turnover of up to 80% among employees who use the app, and 86% of users have become more engaged and happy at work.
With the money, investments will be made in technology, infrastructure, the employee and employer experience, and marketing. This will help the company grow in the US.
Rain’s CEO, Alex Bradford, says:
“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.”
