Rain, a fintech solutions provider which gives employees access to wages instantly upon completing their shifts, recently raised $75 million in series B equity funding.
This funding will go toward the Santa Monica-based company’s goals to develop new products centered around credit and savings.
Led by Prosus and with contributions from a number of companies including Nextalia Ventures and Spark Growth Ventures, this fund comes after Rain’s 2023 series A raise which totaled $116 million – making it one of the largest raises in the human resources tech space.
Through its offerings, Rain aims to alleviate some of the financial tension that stems from the growing number of Americans who are living paycheck to paycheck.
Helps people living paycheck to paycheck
Nearly one-third of Americans are living paycheck to paycheck – up 13% from 2019 – according to a Bank of America Institute report, which defined this as spending more than 90% of household income on necessities.
“Traditional pay cycles often leave workers waiting for their wages while facing immediate financial obligations, increasing reliance on predatory products such as overdraft fees, payday loans and high-interest credit cards,” Rain said in a statement, adding that these products are “structured to trap borrowers in a cycle of debt.”
In addition to early access to wages, Rain’s platform also includes access to financial education services, tax filing tools, deposit accounts and debit cards.
