Los Angeles-based financial technology firm Rain, which focuses on earned wage access (EWA), has raised $75 million in an all-equity Series B fundraising round. Led by Prosus, the investment valued the business at $340 million post-money. The funding will allow Rain to add new financial products like credit cards and savings accounts to its current offering of employee financial wellness solutions. 

Founded in 2019, Rain provides an employer-integrated app meant to reduce financial pressure connected with biweekly pay cycles by letting users access a portion of their earned cash before payday. The platform also offers tools for financial wellness including spending trend analysis and overdraft alerts. Rain has so far onboarded over 2.5 million employees and provided them more than $2 billion in earned wages. 

The way the company operates fits right in with the big payroll and timekeeping systems, making it easier for employers to onboard new hires and cutting down on those pesky ongoing admin tasks.

Rain mainly focuses on mid-market and enterprise clients that have more than 300 employees. Employees can get their earned wages right away for a fee similar to regular ATM charges, which is about $3 per transaction. Alternatively, they can choose a free ACH transfer, which usually goes through by the next business day

Beyond EWA, Rain is all about promoting complete financial wellness. They provide a range of resources, including financial education portals, personalized coaching sessions, and even free tax filing services thanks to their partnership with the taxation solution provider, April. It's interesting to note that a whopping 70% of the platform's monthly adoption rate comes from these extra services, showcasing a strong dedication to enhancing users' financial well-being.

With the fresh capital in hand, Rain is gearing up to roll out an EWA-secured credit card in the third quarter, which will broaden its range of financial products. The Series B funding round also attracted interest from Nextalia Ventures, Spark Growth Ventures, and current investors like QED and Invus Opportunities.

This significant investment highlights just how crucial financial wellness solutions have become in the workplace. It also sets Rain up to keep pushing forward with its mission of equipping employees with the tools they need to attain better financial stability.