Learn how Ramp increased its value by 200% in less than a year.
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Payroll and expense automation has seen a rise in popularity as employees have experienced burnout and a desire to avoid repeating tedious tasks.
There’s also a financial benefit to not wasting working hours on menial tasks, which makes financial management tools a logical investment for employers.
This financial benefit has led to corporate management platform Ramp reaching an incredible valuation of $8.1 billion. This valuation comes after the company secured $550 million in debt and $200 million in equity.
With this funding, the company, which was founded in 2019, has doubled its value. On top of that, Ramp only reached unicorn status last year.
The equity funding was led by Founders Fund and had participation from all major existing investors including D1 Capital Partners, Thrive Capital, and Redpoint Ventures.
There were also new investors in General Catalyst, Avenir Growth Capital, 137 Ventures, and Declaration Partners.
The debt financing included $300 million from Citi and an additional $150 million from Goldman Sachs.
Part of the success of Ramp has been attributed to offering financial automation and analytics to businesses of all sizes. Since expanding from small and medium-sized enterprises the company has managed to achieve cardholder growth of over 15-fold year-over-year.
Ramping up for the future
Ramp has truly skyrocketed in value, and Eric Glyman, co-founder & CEO, detailed this journey in a company blog post: “Since day one Ramp has been designed to save our customers time and money, which is fueling our rapid growth.
“We’ve delivered over $135 million in savings for our customers to date.
“We’re helping companies close their books in eight hours instead of the industry median of eight days – freeing up 3.5 million hours of manual work.
“None of our competitors can say the same. With this funding, we will continue to help even more businesses manage their money easier, faster, and smarter.”
To support this growth, Ramp has already quadrupled its headcount over the last year and has plans to open a new office in Miami on the back of this investment.
The company is also moving forward with collaborations, including a partnership with Amazon Business to streamline business purchasing through Ramp’s receipt-matching integration and both companies’ spend controls.
Ramp has also launched travel partnerships with Lyft and WeWork.
Speaking about the impact Ramp has had on the corporate finance market, Keith Rabois, general partner of Founders Fund, said: “Top-tier CFOs are looking to get the most out of every dollar and hour, and Ramp is the best tool on the market to enable that.
“They’ve also successfully transitioned from a single-product company to a finance automation platform. This second act has massive potential for upside.
“Ramp is freeing finance teams from outdated processes and enabling them to focus on not just funding growth, but accelerating it.”
Ramp has already made a significant impression on the corporate finance market, the next challenge is becoming a mainstay.
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