Ramp is helping businesses automate their financial operations
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The fintech Ramp said Monday it has raised $750 million in financing, valuing it at $8.1 billion, more than double the figure it snagged last summer.
The $750 million includes $200 million in equity funding led by Founders Fund. New investors include General Catalyst, Avenir Growth Capital, 137 Ventures, and Declaration Partners, in addition to tech industry leaders, a statement said. Also taking part were existing investors such as D1 Capital Partners, Thrive Capital, Redpoint Ventures, Coatue Management, Iconiq, Altimeter, Stripe, Lux Capital, Vista Equity Partners, Spark Capital, and Definition Capital.
Ramp also collected $550 million in debt funding, which includes $300 million from Citi and $150 million from Goldman Sachs . The $750 million is an extension to a $300 million Series C round in August that valued the company at $3.9 billion, a spokeswoman said. In all, Ramp has raised $1.37 billion, the company said.
“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, Ramp’s co-founder and CEO, in a statement.
Founded in 2019 but launched publicly in February 2020, Ramp is helping businesses automate their financial operations. Ramp’s flagship product is a Visa corporate card that seeks to alleviate the pain of seeking reimbursement by filing expense reports, Glyman told Barron’s.
Users of Ramp’s software can file their expenses in minutes, he said. They need only snap a photo of a receipt, text it in, and Ramp’s software matches it with the expense, he said.
Ramp is also helping digitize business payments. Glyman estimated that 60% of companies still use checks, cash, and bank-to-bank transfers to pay bills. Businesses can use Ramp’s software to create invoices and their Ramp card to pay their own bills. (Customers can still use checks or the ACH network for vendors that don’t take credit cards, according to the Ramp website.)
More than 5,000 companies now use Ramp’s platform, Glyman said. Customers include Douglas Elliman, Marqeta, and Walther Farms.
Ramp plans to use the funding to invest in R&D, hiring, and potential acquisitions or investments in new companies, Glyman said. The company made its first acquisition over the summer when it scooped up Buyer, which helps companies negotiate better rates for software, in August.
Ramp currently employs 275 people. “We think we could end this year with 400 to 500 employees,” he said.
Despite all this success, Ramp isn’t focused on an initial public offering. The company also isn’t considering another round of funding. “There are no plans for an IPO right now. There are no current plans for another round,” Glyman said.
Write to Luisa Beltran at luisa.beltran@dowjones.com
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