Ramp Secures $150M Deal, Elevating Valuation to $13 Billion

NEW YORK, Oct. 16, 2023 — Ramp, a financial technology startup, has announced a $150 million deal that raises its valuation to $13 billion. This significant increase follows a down round earlier this year that pegged the company’s value at approximately $5.8 billion.

The new financing round, unveiled Monday, involves investments from notable firms such as Khosla Ventures, Thrive Capital, and General Catalyst. This deal reflects a renewed interest in high-growth startups, even amidst a challenging economic landscape marked by higher interest rates.

Ramp’s CEO, Eric Glyman, emphasized the importance of the company’s products during this period of corporate budget constraints. “Our core value proposition is helping businesses achieve more with less and spend less, which has become crucial for survival in 2022 and 2023,” Glyman stated in an interview.

Previously, Ramp’s value peaked at $8.1 billion in 2022. The recent uptick in valuation indicates increasing investor appetite as the tech sector gradually recovers. Last week, Stripe also announced a tender offer that valued the company at $91.5 billion, approaching its peak valuation of $95 billion.

Ramp utilizes artificial intelligence to streamline financial services, automating processes related to credit cards, expenses, and accounting. The company serves around 30,000 U.S. businesses, including known names like Anduril, Barry's, and Poshmark. According to Glyman, the company has processed over $55 billion in annual purchase volume from card transactions and bill payments, a significant growth from $10 billion in January 2023.

Regarding an initial public offering (IPO), Glyman indicated that there are no immediate plans. “There isn’t a timeline in place. However, it’s something we’re thinking a lot about,” he said, noting the company’s monthly burn rate was less than $2 million last year. “That creates less pressure to seek the capital infusion an IPO would provide,” Glyman added.

Ramp’s focus moving forward will be on expanding its enterprise solutions, as the demand for efficient cost management continues to rise in the business sector.