Fintech startup Ramp raises $150 million as valuation recovers

By Thomson Reuters Apr 17, 2024 | 5:30 PM

By Krystal Hu

(Reuters) – Ramp, a developer of finance and expense management software for companies, has raised $150 million in a funding round led by Khosla Ventures and Founders Fund, the company said on Wednesday.

The funding valued Ramp at $7.65 billion, marking a recovery of its valuation from $5.8 billion in the last round in August 2023. Like many other fintech startups, Ramp hit its valuation peak of $8.1 billion in a funding round in 2022 amid the low-interest rate environment when venture capital was ample for private companies.

It also marks a rare late-stage bet by Khosla Venture, which recently recruited Keith Rabois, a long-time investor in Ramp from Founders Fund. Rabois will keep his board seat at Ramp.

New York-based Ramp started as a corporate card provider and now has expanded into expense and finance management tool for businesses. It competes with startups such as Brex, as well as public companies like American Express and SAP-owned Concur.

New investors including Sequoia Capital and Greylock also participated in Ramp’s latest funding round.

The company plans to invest the capital into growing its 730-person team across the U.S. and adding more AI capabilities to help companies manage and monitor spending and save money, as well as eyeing acquisition opportunities.

“I think many in the industry are slowing down their pace of the product innovation. Having the balance sheet to continue investing in hiring and making strategic acquisitions is important to us,” Ramp CEO Eric Glyman said in an interview.

The company did not disclose its revenue, but said its revenue growth rate is accelerating compared to last year, both from corporate cards spending and selling management software.

Last summer, Ramp said it has surpassed $300 million in annualized revenue at a growth rate of more than 100%. It serves companies such as Shopify and Webflow.

(Reporting by Krystal Hu in New York; Editing by Chizu Nomiyama and Jamie Freed)