PALO ALTO — Earnin, an app that allows anyone with a job and a bank account to get paid the minute they leave work, has closed 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 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. 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.
Companies using Earnin include Apple, Uber, Starbucks, Pizza Hut, Walmart and Bank of America.
“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.”
Earnin was launched in 2014.