Earnin, the mobile pay app that lets anyone with a job and bank account get paid instantly, has raised $125m financing to build next generation financial system.
Earnin is an app that gives access to a person with a job and bank account to get paid for the work that has been done for the day.
The person does not have to wait for two weeks or a month to receive the paycheck. Instead, with Earnin app, the customer, by connecting the bank account and employment information can gain access to his or her earnings.
The person can choose the available amount and cash it out. When the paycheck arrives, the app will debit back the amount that has been cashed out. The process does not cost any fees, interest or hidden costs. And, it only works on the tips that are given by the customers, which they are fair.
Earnin secured financing from DST Global, Andreessen Horowitz, Spark Capital, Matrix Partners, March Capital Partners, Coatue Management and Ribbit Capital, as well as a16z Cultural Leadership Fund.
Earnin gives Americans better control of their money, allowing them to absorb unexpected expenses and avoid predatory financial products.
Its community is includes workers from more than 50,000 employers from all the 50 states, with a combined logging of 15 million hours of weekly work.
Earnin founder and CEO Ram Palaniappan said: “We’ll continue to shine a spotlight on unfairness. 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.”
Earnin stated that the app had witnessed rapid growth fueled by its connection with the community. The ‘pay it forward’ model has been helpful for those need the service the most and claims to have inspired more than 6 million thank you messages between the customers.
During the recent hurricane season, Earnin was used in evacuation zones on the Atlantic Coast to cover fuel expenses.
Andreessen Horowitz general partner and Earnin board member Alex Rampell said: “Earnin is a champion for everyday Americans. 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.”