US start-up Ramp reaches $8.1bn valuation with fresh $750m funding
Ramp, a New York-based finance automation platform and corporate card provider, has announced $750 million in new financing, bringing its valuation to $8.1 billion.
The raise included $200 million in fresh equity funding 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.
They were joined by new investors such as General Catalyst, Avenir Growth Capital, 137 Ventures, and Declaration Partners.
Ramp also secured $550 million in debt financing, including $300 million from Citi and an additional $150 million from Goldman Sachs, which doubled its commitment to $300 million.
The start-up has now raised over $1 billion in financing since its founding in March 2019. Last August, it raised $300 million in a Series C round, with a valuation of $3.9 billion.
Ramp says it enables a broad range of customers and industries – “from fast-growing start-ups to multi-billion dollar enterprises and multi-generational potato farmers” – to manage their spend and build sustainable businesses.
With 5,000+ businesses on the platform, Ramp’s revenue grew nearly tenfold in 2021, and the firm is powering over $5 billion in annualised payments volume.
The company has quadrupled its workforce over the past year, and will open a new office in Miami later this year.
“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,” says Eric Glyman, co-founder and CEO of Ramp.
“Since day one Ramp has been designed to save our customers time and money, which is fuelling our rapid growth. We’ve delivered over $135 million in savings for our customers to date,” he continues.
“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.”
Customers use Ramp as their primary spend management solution to fully automate non-payroll spend and streamline their financial operations, including employee expenses, travel management, procurement, and bill payments.