Fintech Ramp said on Monday it had raised $750 million in funding, valuing it at $8.1 billion, more than double the figure it secured last summer.
The $750 million includes $200 million in equity led by Founders Fund. New investors include General Catalyst, Avenir Growth Capital, 137 Ventures and Declaration Partners, in addition to technology industry leaders, according to a statement. Also in attendance were existing investors such as D1 Capital Partners, Thrive Capital, Redpoint Ventures, Coatue Management, Iconiq, Altimeter, Stripe, Lux Capital, Vista Equity Partners, Spark Capital and Definition Capital.
Ramp also raised $550 million in debt financing, including $300 million from
and $150 million from
The $750 million is an extension of a $300 million Series C seed round in August that valued the company at $3.9 billion, a spokeswoman said. In total, Ramp has raised $1.37 billion, the company said.
“We are pursuing an extraordinary opportunity to reshape an industry that has historically been misaligned and disconnected from the needs of its customers,” Eric Glyman, co-founder and CEO of Ramp, said in a statement.
Founded in 2019 but launched publicly in February 2020, Ramp helps companies automate their financial operations. Ramp’s flagship product is a
corporate card that seeks to ease the pain of seeking reimbursement by filing expense reports, Glyman said Barrons.
Users of Ramp’s software can record their expenses in minutes, he said. They just take a picture of a receipt, text it, and Ramp’s software associates it with the expense, he said.
Ramp also helps digitize business payments. Glyman estimated that 60% of businesses still use checks, cash and bank transfers to pay their bills. Companies can use Ramp’s software to create invoices and their Ramp card to pay their own invoices. (Customers can still use checks or the ACH network for vendors that don’t accept credit cards, depending on the ramp site.)
More than 5,000 companies now use Ramp’s platform, Glyman said. Clients include Douglas Elliman, Marqeta and Walther Farms.
Ramp plans to use the funding to invest in R&D, hiring, and potential new business acquisitions or investments, Glyman said. The company made its first acquisition over the summer when he picked up the buyerwhich helps companies negotiate better software pricing in August.
Ramp currently employs 275 people. “We think we could end this year with 400 to 500 employees,” he said.
Despite all this success, Ramp is not focused on an initial public offering. The company is also not considering another round of financing. “There are no plans for an IPO at this time. There are no current plans for another round,” Glyman said.
Write to Luisa Beltran at [email protected]