Prosus has led a $75m funding round for Rain, a US-based financial technology platform specialising in earned wage access.
Founded in 2019, Rain works by giving employees instant access to their earnings for work they have already done, helping millions of Americans reduce reliance on high-cost credit and to better manage their finances.
For example, if a person has worked a certain number of days in a month and is in need of cash, the company will calculate a per-day rate based on their total pay and then pay employees of registered companies what has been earned so far in a particular cycle.
The company, headquartered in Santa Monica, announced it had raised $75m (about R1.45bn) in a series B equity funding round, led by Naspers’ international unit. The capital raise included participation from Nextalia Ventures, Spark Growth Ventures, and existing investors QED and Invus Opportunities.
Prosus did not disclose the exact amount it has invested.
The new funds will be used to scale Rain’s go-to-market operations, grow its customer base and expand a suite of financial wellness tools that support employees and employers.
Its software integrates directly with employer payroll and human resources (HR) systems. According to the company, employers who use the platform report a 200% increase in job applications, 20 more hours worked per employee per month and a 46% improvement in employee retention after six months.
Since inception, Rain has distributed more than $2bn in earned wages to more than 2.5-million workers.
The business is based on similar business models in the UK, such as Wagestream, which works with employers to let employees draw down a percentage of their income in the month for a flat fee.
In SA, companies such as Floatpays and Jem HR (formerly SmartWage) are in the same market.
Naspers’ now-defunct R1.4bn SA start-up investment arm backed Floatpays from 2022.
“The relationship between work and life is evolving, and independent financial flexibility is becoming essential for employees,” said Ali Esfahani, head of Americas investments at Prosus.
“Rain provides a solution that empowers workers, helps businesses thrive, and plays a fundamental role in this shift in workforce dynamics. We believe in their vision and are excited to be part of this journey as they continue to grow their business.”
In addition to earned wage access, Rain includes financial tools such as bill-reduction services, a deposit account and debit card, overdraft avoidance features, tax filing support, and in-app financial coaching. The company has plans to expand this with upcoming launches in savings and credit-building, which are “set to deepen Rain’s long-term effect on workers’ financial health.”
As a global investor in e-commerce and marketplaces, Prosus has long backed the platforms shaping how people shop, move, learn and pay.
Prosus said the latest investment fit into its broader portfolio made up of companies in food delivery, education, fintech and classifieds, such as Flipkart, OLX, iFood and Swiggy.
These platforms are driven by a distributed, flexible labour force — from warehouse staff, delivery partners and customer support teams — “who benefit from earned wage access and financial wellness tools. Rain sits squarely in this strategy, improving outcomes for workers and creating value for employers and the broader economy.”
Correction: April 10 2025
An earlier version of this story had the incorrect rand conversion of the dollar amount. This has been corrected to R1.45bn.
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