Spend management startup Ramp has raised USD 300 million in a Series C round of funding that values the company at USD 3.9 billion, according to TechCrunch.
That’s more than double the USD 1.6 billion that US-based Ramp was valued at in April 2021 at the time of its Series B. Founders Fund led the latest round, which brings the fintech’s total equity and debt raised to date to over USD 625 million since its March 2019 inception. Redpoint Ventures, Thrive Capital, D1 Capital Partners, Spark Capital, Coatue Management, Iconiq, Altimeter, Stripe, Lux Capital, A* Partners, Definition Capital, and other existing backers participated in the financing. Founders Fund also led Ramp’s USD 115 million Series A in February 2020.
Since the beginning of 2021, the company says it has seen its number of cardholders on its platform increase by 5x, with more than 2,000 businesses currently using Ramp as their ‘primary spend management solution’. The transaction volume on its corporate cards has tripled since April 2021, when its last raise was announced. Also, Ramp has seen its transaction volume increase year over year by 1,000%, according to its CEO. Given the company’s business model (it makes money mostly off interchange fees), Ramp also saw its revenue increase by the same amount during that time frame.
Ramp also announced its acquisition of Buyer, a ‘negotiation-as-a-service’ platform that claims to save its clients an average of 27.3% on big-ticket purchases, such as annual software contracts. Looking ahead, the company plans to use its new capital to speed up the development of its finance automation platform. It’s also going to continue to hire, adding to its nearly 150-person team. For context, Ramp started the year with 65 people and employed about 100 at the time of its April 2021 raise.
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