PALO ALTO, Calif.–(BUSINESS WIRE)–Earnin, an app that allows anyone with a job and a bank account to get paid the minute they leave work, announced today the close of a $125 million round of equity financing from DST Global, Andreessen Horowitz, Spark Capital, Matrix Partners, March Capital Partners, Coatue Management and Ribbit Capital. Also investing is the a16z Cultural Leadership Fund, which unites cultural leaders with the best new technology companies.
Earnin emerged as one of the fastest-growing finance apps in 2018. It is an elegant solution that allows people to access their pay the minute they leave work, with no fees, interest, or hidden costs. People simply tip what they think is fair and receive their money in their bank account instantly. As a financial company that puts people first, Earnin is giving Americans better control of their money, allowing them to absorb unexpected expenses and avoid predatory financial products. Its community includes workers from more than 50,000 employers across all 50 states, logging a combined 15 million hours of work a week.
“We’ll continue to shine a spotlight on unfairness,” said Earnin Founder and CEO Ram Palaniappan. “Our work doesn’t end with the pay cycle. We will expand our team and develop new partnerships, but most importantly, continue to drive awareness around the financial challenges faced by so many Americans.”
The rapid growth is fueled by the deep connection Earnin has with its community. Its ‘pay it forward’ model provides access to those who need the service the most and has inspired more than six million thank you messages between customers. During the recent hurricane season, Earnin assisted community members in evacuation zones on the Atlantic Coast by covering fuel expenses. In 2017, the company also facilitated a $100 gift to some Texas Walmart workers pulling the holiday shift on Thanksgiving Day.
“Earnin is a champion for everyday Americans,” said Alex Rampell, general partner at Andreessen Horowitz and board member at Earnin. “It’s rare for a company to tackle social change while also solving financial challenges, but Earnin’s advocacy and unwavering drive to redefine the banking system is what sets them apart.”
The company has made a commitment to its customers, putting safety measures within the product. Earnin will only give you money for hours that you have already worked and will not act if a member of their community suffers a hardship and is unable to repay.
“We’re excited to partner with Ram and his team to help reduce the financial stress of working Americans,” said Rahul Mehta, managing partner at DST Global. “Earnin’s truly innovative and unique approach has shielded people from unnecessary fees and predatory lending practices. The company’s significant growth in 2018 is a testament to the value they provide their community.”
In just a few years, Earnin has gone from an idea shared among family and friends to a nationwide community of people supporting each other.
“The rapid growth of Earnin makes it clear that there was a huge gap in the financial system,” said Dana Stalder, general partner at Matrix Partners and board member at Earnin. “Not only did they identify the problem, but they mobilized a loyal community long overlooked by institutions that deemed them unprofitable.”
Earnin is the new, faster way to get your paycheck. Unlike traditional, rigid paychecks that only show up every two weeks, Earnin gives you access to your pay as you earn it — any time, any day, right from your smartphone. Earnin charges no fee or interest for using the service: instead, with each transaction customers are given the opportunity to pay what they believe is fair. Launched in 2014, Earnin is driving consumer-empowered finance through mobile technology by breaking open more than $1 trillion held up in America’s pay cycle. Please visit www.Earnin.com.