(MT Newswires) --
Rain Technologies has spent years growing quickly and quietly, building a business that touches millions of workers while flying largely under the radar. That's starting to change.
Even though it is still relatively unknown, the company serves more than 1,200 active employers and has reached about four million employees since its product officially launched in March 2020, Fred Choquette, Rain's chief operating officer, told MT Newswires.
The company was valued at $250 million as of March 2023, according to FactSet and has raised equity totaling $153.60 million, according to the financial data provider.
Strong Growth and Improving Financials
Rain's business has grown over the past year, driven mainly by employers signing on rather than consumer marketing. At the time of the interview in December 2025, the company paid out more than $4 billion in wages to workers so far that year, according to Choquette.
Although Rain doesn't share its revenue publicly, Choquette said that the company grew more than 50% in 2025 compared with 2024. Looking ahead to 2026, he said that Rain expects that growth to accelerate.
"We're targeting over 100% [revenue] growth [this] year," Choquette said.
Choquette added that the company became cash-flow positive in the third quarter of 2025.
Putting New Capital to Work
In April last year, the earned wage access provider raised $75 million in a Series B funding round led by Prosus with additional participation from Nextalia Ventures, Spark Growth Ventures and other investors. Capital from the funding round was allocated to two areas: go-to-market and product innovation, according to Choquette.
"Rain has made it to where it is today without any marketing. We've never historically done any marketing. People don't know our name. It's funny, because we're now a top-three earned wage access player in the world," he said. "Priority number one is making sure our name is there."
"We significantly beefed up our go-to-market team, across sales, direct sales, channel sales, our BDRs [business development representatives], events, marketing," Choquette said. "The second place is product innovation: so we've put a lot of that capital towards continued product innovation to help us change from being a point solution of on-demand pay to a holistic financial health platform."
Rain is also doubling down on partnerships, especially within the human capital management space. "[The] employee benefit space is very much a partnership-led environment. It is an ecosystem of partners that work together," Choquette said. He said that the company is working to grow new partner relationships as well as grow with existing partners.
A Pandemic-Era Launch and a Payroll Timing Challenge
Rain officially launched its first transaction in March 2020, just as the COVID-19 pandemic hit. The company had been formed months earlier, but the timing of its launch highlighted the urgency of the problem it was trying to solve.
The problem was not that workers lacked income, but that they lacked access to it when they needed it most. Choquette indicated that roughly two-thirds of U.S. households live paycheck to paycheck, which Rain defines as having less than $500 in savings.
When unexpected expenses hit, many workers are forced to overdraft their accounts, use credit cards or turn to payday loans, all of which add financial pressure through fees - sometimes exorbitant - and interest.
"Banks make about $150 billion in revenue per year just from the people who have less than $500 in savings. Then you add on top of that the $30 billion-plus payday lending ... industry [revenue]," Choquette said. "That's $180 billion in revenue being made from companies just because people don't have access to liquidity when they need it."
Rain's insight was that many of these costs are caused by timing. Bills often come due between paychecks, even though workers have already earned the money. Choquette said that Rain's technology works with existing payroll systems to let employees access earned wages early, without changing payroll schedules.
From On-Demand Pay to Peace of Mind
The company's goal today is to help employees move toward financial stability, and on-demand pay is really the start, according to Choquette.
"When you're living paycheck to paycheck, one emergency could be the difference between putting food on the table or not," Choquette said. "It's very hard to think about budgeting. It's very hard to think about saving. It's very hard to think about anything other than just survival."
Once users have access to their earned wages when they need them, Rain offers services to help them reduce their overdraft fees, other predatory fees and interest. From there, Rain encourages users to build savings and improve their credit scores.
"What we saw is users are looking for peace of mind, and so that's why we called the company Rain. We wanted people to come onto the app and feel calm," Choquette said. "We didn't want to remind people that it had to do with money or their pay."
Diversification of Offerings
As the earned wage access market has grown, Choquette said that the company has moved beyond a single product. Over the past year, Rain has launched a debit card and checking account that now serve as the foundation for a broader set of tools.
Those tools include budgeting features, spending analytics, overdraft protection and rewards, many of which launched in late 2024 or early 2025, Choquette said. Additional products are planned for 2026, including credit score-builder tools and a credit marketplace.
"On-demand pay is still the number one product for Rain," Choquette said. "But the most promise is this holistic platform."
Instead of charging for each feature on its own, Rain aims to offer everything together as a single financial health platform.
Planning Ahead
As the business grows, Rain, which currently has about 200 employees, has plans to add some headcount in 2026.
"I think we have reached a scale where we could probably double the size of our business and not necessarily need to really grow headcount," Choquette said. "But as we continue to make investments in product and go to market, we may strategically add roles."
For now, Rain sees plenty of opportunity to grow in the U.S. before expanding to other countries.
"There's definitely that possibility [to expand into other countries], but I will say the U.S. market, we believe, is less than 15% penetrated," Choquette said. "So before we go and focus on other geographies, there is a massive opportunity to serve the American people and serve them well. And so I think our focus, at least for [2026], remains entirely in the U.S."
Rain is open to partnerships and acquisitions that could help strengthen its platform, Choquette noted. The company also expects to raise more funding at some point, likely through a Series C, although the timing is still open, he added.
"Whether it happens in 12 or 24 months is not determined at the moment, but we are actively talking to investors all the time," he noted.
Longer term, Rain expects to take the company public, though Choquette said a 12- to 24-month timeline may be tight. He added that the timing will depend on business performance and market conditions.
"There's a lot that's out of our hands," he said. "So the goal, though, is to go public."
For now, Choquette said Rain is focused on growing its platform, working more closely with employers and partners and looking at acquisitions or partnerships that could help make the product stronger.
"We're gaining a lot of market share," Choquette said. "The next step is making sure people actually know who we are."
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