The Series A round comprised $66 million in equity and $50M in debt.

Rain, a provider of financial wellness products that empower and engage employees, has raised $116 million in funding, including $66 million in equity and $50 million in debt, making it the largest HR tech funding round in history, based on Crunchbase data.

The funding was led by QED Investors and Invus Opportunities. Firms including WndrCo, Tribe Capital, and Dreamers VC, which was co-founded by Will Smith, also participated. Sound Point Capital Management, LP arranged the debt portion of the funding. (Businesswire)

Rain will use it to fuel its continued expansion in the US through investments in technology and infrastructure, employee and employer experience, and marketing.

Rain offers on-demand pay or earned wage access to workers through its platform. Rain’s product enables workers to access their pay shortly after completing a shift instead of waiting for payday. This is also known as “income streaming.”

The liquidity facility helps businesses attract and retain workers and improve job satisfaction and engagement.

While employers do not pay a charge to Rain, an employee that uses the facility to withdraw earned wages does have to pay a small fee. Moreover, the withdrawal amount is restricted to a maximum of 50% of gross earned wages per pay period.

The facility is a superior alternative to payday loans which can cost the employee as much as a 400% APR. The response to the product has been excellent – the Rain app has grown its user and client base over 20% per month over the past 30 months since launch in early 2020.

“Companies like Rain are helping to even the playing field by giving hourly workers the ability to access the money they earn faster, providing them with peace of mind, saving them millions in fees, and improving their overall financial health,” said Nigel Morris, Managing Partner and Co-Founder of QED Investors.

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