US fintech Ramp secures $300m Series D funding at reduced valuation
Ramp, a New York-based finance automation platform for businesses, has secured $300 million in a Series D funding round at a post-money valuation of $5.8 billion.
This represents a 28% drop from its $8.1 billion valuation back in March 2022, when the firm raised $750 million in a mix of equity and debt financing. The latest funding round was co-led by Thrive Capital and Sands Capital, with participation from General Catalyst, Founders Fund, and other existing investors.
With the new money, Ramp plans to accelerate its product roadmap by expanding into “adjacent categories” such as procurement and hiring new team members across all functions. The fintech also plans to facilitate its expansion through partnerships and acquisitions. Next month, the company will also be rolling out Ramp Plus, a paid edition of its platform, to all its customers.
Writing about the fundraise on the company website, Eric Glyman, co-founder and CEO of Ramp, says: “While today’s valuation is lower than our peak in late 2021, given the broader start-up market valuation reset and increased cost of capital, we know it reflects exceptional performance by our team and support from our customers.”
Since its last fundraise, Ramp has expanded to offer spend management software along with travel, accounts payable, working capital and global payments services, and has also branched out into artificial intelligence (AI) with the recent acquisition of Cohere.io. It claims to serve over 15,000 companies, saving customers more than $600 million and over 8.5 million hours of employee time.
“In the last year alone, we’ve expanded Ramp’s offerings to become the only platform in the market that’s designed to save businesses time and money,” Glyman adds.
“Our mission is to help our customers build healthier businesses and this funding will help us execute against our goal to continue expanding the Ramp platform to better serve customers.”