Ramp, which provides a corporate card and spend management platform, has raised $115 million in new funding at a $1.6 billion valuation.
The new capital injection was led by D1 Capital Partners and Stripe with participation from Goldman Sachs, Founders Fund, Coatue Management, Thrive Capital, Redpoint Ventures, Box Group, Neo, Contrary Capital and angel investors, according to a news release.
The latest round brings its total venture and debt funding raised to date to $320 million.
Ramp has seen some explosive growth. In the past six months, transaction volume for the company has grown by about 400% and is getting close to a run rate of $1 billion annually. The company says a third of its customers switched over from American Express and over 90% of its clients use Ramp’s spend management platform, replacing Expensify, Concur or manual solutions.
The startup plans to use the funding to help with its growth and product development as it adds new features and payments capabilities, such as card controls, automated savings and accounting automation.
Ramp CEO Eric Glyman told FinLedger that the funding will also be used to hire across departments. The company has been doubling its headcount every six months and Glyman said he expects that trend to continue. The company currently has about 100 employees. Glyman said he couldn’t provide specific revenue numbers.
The company also recently brought on former Stripe and Goldman Sachs executive Colin Kennedy as Chief Business Officer, who will help Ramp grow its partnerships, sales and marketing efforts.
Going forward, Glyman said the company is focusing on continuing to build a product that adds value for customers and working at a larger scale.
“Our obligation is to make sure that as there’s more people using it, the speed and automation continues to grow,” he said. “Lastly, I think just working to be on a larger scale. While we’re happy with the growth to date, we think that we can reach a lot more people than the [amount of] folks currently using Ramp.”
Additionally, Glyman said he sees opportunities growing organically, through advertising and through partnerships.
“Ramp has quickly become a key player in the financial services ecosystem by challenging business practices and assumptions that have existed for nearly 50 years,” Dan Sundheim, Founder and Chief Investment Officer of D1 Capital Partners, said in a statement. “The company attracts new customers by providing value and savings, and empowers CFOs and finance teams to operate at a higher level of efficiency. We look forward to supporting Ramp during its next phase of growth.”
In February we reported that payments platform Plastiq and Ramp, which provides a corporate card and spend management platform, have teamed up in a partnership that will enable businesses to pay for “virtually any expense” via the Ramp card.