Ramp Hits $13 Billion Valuation, Allows Employees to Cash Out

NEW YORK — Ramp, a financial technology startup, has reached a new valuation of $13 billion following a $150 million investment round that allows some employees and early investors to cash out. The announcement was made on Monday, showcasing a significant recovery from its earlier valuation of $8.1 billion in 2022 and a troubling down round that placed its worth at approximately $5.8 billion in 2023.

The funding round attracted notable investors, including Khosla Ventures, Thrive Capital, and General Catalyst, indicating a renewed interest in high-growth startups despite the challenges posed by rising interest rates.

This deal is part of a broader trend among private companies providing cash-out opportunities for their employees. Recently, Stripe announced a tender offer valuing the company at $91.5 billion, which also marked a recovery from its peak valuation of $95 billion.

Ramp, co-founded by Eric Glyman and Karim Atiyeh, specializes in automating expenses and accounting through artificial intelligence, also issuing corporate credit cards. Glyman pointed out that the company’s mission has evolved as businesses seek ways to decrease costs amid a challenging economic landscape. “Our core value proposition is helping businesses achieve more with less,” Glyman said. “This need has transitioned from a nice-to-have to truly the difference between whether you would exist or not in 2022 and 2023.”

Currently, Ramp serves around 30,000 businesses across the U.S., including recognizable names such as Anduril, Barry’s, and Poshmark. The company has seen a significant increase in its annualized transaction volume, which jumped from $10 billion in January 2023 to over $55 billion today.

Ramp generates revenue through interchange fees from credit card transactions and higher-margin software subscriptions. Regarding plans for an initial public offering (IPO), Glyman indicated that there isn’t an established timeline yet, but the prospect is actively considered. “There isn’t what you would typically see with a strong need for the capital infusion an IPO would provide,” Glyman noted. “That said, companies that are seeking to stand the test of time often pursue going public.”