Corporate card startup Ramp bags $750M in funding to help businesses automate their financial operations and spend less
Ramp, a New York-based fintech startup and one of the fastest-growing corporate card players, has raised $750 million in new financing. The round, which pushes the company’s valuation to $8.1 billion, included $200 million in fresh equity funding as well as $550 million in debt financing from banks including Goldman Sachs and Citi.
The round was led by Founders Fund, with participation from all major existing investors including D1 Capital Partners, Thrive Capital, Redpoint Ventures, Coatue Management, Iconiq, Altimeter, Stripe, Lux Capital, Vista Public Strategies, Spark Capital, and Definition Capital. Ramp has now raised over $1 billion in financing since its inception three years ago.
Ramp will use the new capital infusion to bolster its balance sheet as it looks to offer “low cost and affordable capital” to its customers and as it builds out new partnerships with other tech names like Amazon and Google. Cofounder and CEO Eric Glyman said Ramp has already nabbed customers from rivals like Amex and Brex.
“If we’re able to build products that truly help our customers operate better, businesses grow more efficiently, spend less money and spend less time, we can build something really unique,” Glyman added.
Founded in 2019 by CEO Eric Glyman, Gene Lee, and Karim Atiyeh, Ramp develops corporate cards designed to save businesses money. The company is redesigning how corporate spending should be managed to help save businesses time, money, and ensure control. Ramp provides companies with higher card limits, insightful saving opportunities, and automated expense management.
Ramp said that two-thirds of its existing customer base have switched their accounts from other corporate card names, including industry stalwarts like Amex and startup competitors like Brex.
“We are pursuing an extraordinary opportunity to overhaul an industry that historically has been misaligned and out-of-touch with the needs of its customers,” said Eric Glyman, co-founder & CEO, Ramp. “Since day one Ramp has been designed to save our customers time and money, which is fueling our rapid growth. We’ve delivered over $135 million in savings for our customers to date. We’re helping companies close their books in eight hours instead of the industry median of eight days – freeing up 3.5 million hours of manual work. None of our competitors can say the same. With this funding, we will continue to help even more businesses manage their money easier, faster, and smarter.”
Other backers in the round include new investors General Catalyst, Avenir Growth Capital, 137 Ventures, and Declaration Partners, in addition to tech industry leaders. Ramp also secured $550 million in debt financing to support the company’s rapid scaling, including $300 million from Citi and an additional $150 million from Goldman Sachs, which doubled its commitment to $300 million.
Ramp also said that it will use the additional funding will accelerate Ramp’s development of its finance automation platform, following its recent release of a travel product and features that fully automate expense management.
“One of our core differentiators at Founders Fund is the willingness to double, triple, quadruple down when a company is executing at the highest levels,” said Keith Rabois, General Partner, Founders Fund. “Especially in volatile times like today, top-tier CFOs are looking to get the most out of every dollar and hour, and Ramp is the best tool on the market to enable that. They’ve also successfully transitioned from a single-product company to a finance automation platform. This second act has massive potential for upside. Ramp is freeing finance teams from outdated processes and enabling them to focus on not just funding growth, but accelerating it.”