Ramp, a fintech startup offering a corporate card that helps businesses spend less, is NYC’s newest unicorn after a massive $115 million Series B announced Thursday, which values the two-year-old company at $1.6 billion. The round was co-led by D1 Capital Partners and Stripe, with participation from major industry players like Goldman Sachs, Founders Fund and Coatue Management.
Founded in 2019, Ramp has created a corporate credit card and software that helps companies track and manage their overall spend. Together, they’re designed to be easy to use, automated and intelligent, replacing the “complex” rewards systems, “bloated” legacy expense management software and “scattered” spending oversight that co-founder and CEO Eric Glyman says has been bogging the industry down for decades.
“From day one, we’ve vowed to put the customer first and drive cohesion, automation, transparency, and efficiency for finance teams so companies can save time and money,” Glyman said in a recent blog post. “Our customers depend on Ramp to manage their finances during hypergrowth and inflection points within their company trajectories — when things can get especially messy and complicated for finance teams.”
To date, Ramp says it has managed to save its customers more than $10 million in wasteful spending, eliminated expense reports and helped users close their books 86 percent faster.
Ramp has more than 1,000 customers, including fast-scaling unicorns like Ro and Better. The company says a third of its customers switched over from American Express, and more than 90 percent of its customers used Ramp to replace more manual solutions like Expensify or Concur, indicating that this young startup is disrupting the decades-old corporate card industry.
“Ramp is rapidly emerging as a generational fintech company,” Keith Rabois, a partner at Founders Fund, said in a statement. “Though it launched publicly just one year ago, Ramp is already viewed as the obvious choice for efficient spend management at the fastest-scaling, highest-performing startups.”
Ro’s CFO Aron Susman likens the switch to Ramp to “upgrading from a flip phone to an iPhone.”
“Thanks to Ramp’s superior product, we no longer have to manage a separate expense management software, we have full visibility into spend, and we are achieving efficiencies we never expected,” Susman said in a statement. “Ramp brings corporate cards into the future.”
Glyman says this latest valuation makes Ramp “the fastest-growing startup ever to come out of New York,” and “one of the top 10 fastest-growing U.S. startups ever.” Much of this growth has happened in just the last six months, with transactions increasing by about 400 percent. The company also says it is nearing an annualized transaction rate of $1 billion.
“Our growth is only just beginning,” Glyman continued in his blog post. “During our next phase of growth, we plan to expand our efforts to bring the value of Ramp to more businesses in more places and to transform the way more companies do business.”
More specifically, Ramp says it plans to use this fresh funding to grow its sales, partnership and marketing efforts, as well as its team, with more than 30 open tech positions available now. The company also plans to add new features and payment capabilities to its platform that “have not been seen in the corporate card or expense management space before,” including card controls, automated saves and accounting automation.
