Archive — US — techcrunch
Los Angeles-based Rain raised a $75M Series B in another good sign for fintech
Rain, a fintech startup from Los Angeles, secured $75 million in a Series B funding round led by Prosus, valuing the company at $340 million. The funds will enhance their EWA app with credit card and savings products, targeting mid-market and enterprise clients. Amid rising financial struggles, Rain emphasizes financial wellness and aims to help users manage finances better, distinguishing itself in a competitive market.
Key points
- Rain has raised $75M in Series B funding for expanding financial products.
- Led by Prosus, the funding values the company at $340M.
- 35% of U.S. households below $50K income live paycheck to paycheck, increasing from 32% in 2019.
- Rain's EWA platform allows early wage access, seen as less predatory than payday loans.
- Plans include launching an EWA-secured credit card and savings accounts with auto-save features.
- Rain aims to foster financial wellness alongside EWA with coaching and education services.
Why it matters
- The fintech sector is recovering after a year of stagnation, aligning with trends towards comprehensive financial solutions.
- Increased venture funding (45% decline in 2023) reflects a mixed fintech ecosystem, with a shift towards higher average deal sizes.
- Regulatory scrutiny on employee-side EWA platforms highlights the need for responsible financial solutions like Rain's.
Rain's innovative approach, combining earned wage access with financial wellness tools, positions it well for growth in a recovering fintech landscape, aiming to improve financial stability for users.