Earned wage access platform Rain raises $116m

QED Investors and Invus Opportunities led the round, with participation from WndrCo, Tribe Capital, and Dreamers VC. The debt facility was arranged by Sound Point Capital Management.

The Rain platform enables employers to offer workers on-demand pay or earned wage access. The service is offered free to employers who provide it to their employees as a voluntary benefit. Employees pay a small fee similar to an ATM charge each time they withdraw their earned wages and are never able to withdraw more than 50% of gross earned wages per pay period.

The service is currently used by employers with a total of over half a million employees across several large healthcare systems, senior living groups, hotel franchises such as Hilton and Marriott, and fast food franchises including McDonald’s, Burger King, and Taco Bell.

Rain says that employers have seen up to 80% reduction in turnover among staffers using the app and improved job satisfaction and engagement by 86% of users.

The funding will be used to push expansion in the US through investments in technology and infrastructure, employee and employer experience, and marketing.

Alex Bradford, CEO, Rain, 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.”