FinTech News
Spend Management FinTech Ramp Raises $150 Million
The FinTech startup Ramp has revealed its latest “mega-round.”
About the round:
This week, Ramp announced that it had raised $150 million. The Series D-2 was co-led by Khosla Ventures and Founders Fund. Additionally, new investors Sequoia Capital, Greylock, and 8VC joined existing investors Thrive Capital, General Catalyst, Sands Capital, D1 Capital Partners, Lux Capital, Iconiq Capital, Definition Capital, Contrary Capital, and others in participating in the round. To date, the company has now raised a total of $1.8 billion including the $300 million Series D last year and a $200 million Series C in 2022.
These latest funds value the company at $7.65 billion — up from the $5.8 billion valuation that the previous Series D funds were raised at. However, as TechCrunch notes, Ramp was pegged with an $8.1 billion valuation back in 2022.
About Ramp:
Ramp is a spend management startup that helps companies control and optimize their financial operations. As a result, the company says that the average company that uses the platform saves 5% on their expenses. In total, this has amounted to more than $1 billion in savings along with 10 million labor hours saved.
The startup has also actively expanded its services. According to Ramp, in the past year, they launched more than 150 new product innovations. This includes upgrades to its spending management products, integrations with various productivity software, accounting automation, and more.
What they’re saying:
Reflecting on the company’s success so far, Ramp co-founder and CEO Eric Glyman wrote in a blog post, “Ramp started out just five years ago as a better corporate card—designed to help companies spend less, not more—and that remains true. Today, our core mission is unchanged: save time and money for our customers to help them build more successful, profitable businesses. But our capabilities have expanded dramatically.”
As for this round specifically, Glyman noted, “This new funding will allow us to triple down on the next wave of innovation to deliver much more value for our customers. This includes using AI capabilities to automate cumbersome processes, provide deeper insights into spending, enhance decision-making capabilities, and more.” He concluded, “We’re just getting started as we help our customers create the finance function of the future.”
My thoughts:
Looking at the massive funding rounds that Ramp has been able to secure, there’s no doubt that the company is finding success. And while a dip in valuation is never good, the fact that Ramp is working back up to what was likely an overly-inflated 2022 value is actually impressive given how much the market has changed since that time. Therefore, I’d expect Ramp to continue on its upward trajectory from here as it continues to grow and expand its platform.
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