Ramp, which offers a corporate card that provides 1.5% unlimited cash back, has raised $300 million in a Series C round and has purchased negotiation-as-a-service platform Buyer.
The $300 million round brings Ramp’s valuation to $3.9 billion. The Series C round comes just four months after a $115 million Series B round that valued the New York City-based startup at $1.6 billion.
“With the funding, we’ll double down on product innovation and further differentiate our offering in the market with industry-first capabilities,” said Colin Kennedy, Ramp’s chief business officer. “While Ramp has been a product-first company and grown largely organically — without a heavy investment in sales and marketing — the new funding will also allow us to reach more businesses by building out our go-to-market functions.”
Founders Fund led the Series C round, with participation from Redpoint Ventures, Thrive Capital, D1 Capital Partners, Spark Capital, Coatue Management, Iconiq, Altimeter, Stripe, Lux Capital, A* Partners, Definition Capital and other existing investors.
Since its founding in 2019, the company has raised more than $625 million in debt and equity financing.
Over 2,000 U.S. businesses use Ramp, such as lending platform Better, residential real estate company Douglas Elliman and health care nonprofit Planned Parenthood. Ramp’s Visa card is issued by Attica, Ohio-based Sutton Bank.
Aside from 1.5% cash back, benefits of the Ramp card include:
- No credit checks.
- No fees.
- Unlimited instant cards.
- Unlimited receipt matching.
- Slack integration.
Among Ramp’s competitors are Airbase, American Express, Brex, Divvy and Expensify.
The fintech plans to use the fresh $300 million to accelerate development of its finance automation platform, designed to help businesses save time and money. On average, the company’s customers save 3.3% a year by switching their corporate cards to Ramp. Finance teams who use Ramp can, in most cases, account for and record all business expenses at month’s end in just over two hours, representing a 90% reduction in time spent on those tasks.
“It’s rare to find a company like Ramp whose growth is actually accelerating as they scale. Ramp’s vision of helping businesses spend less is clearly resonating with customers, so we are delighted to be leading this round,” Keith Rabois, a partner at Founders Fund, said in an Aug. 24 news release. “The upside for Ramp is huge, given the rapidly growing B2B payments opportunity and the ongoing consolidation of financial software in the enterprise.”
Eric Glyman, co-founder and CEO of Ramp, said the startup aims to equip businesses with more financial power.
“Frankly, the current state of finance tools and legacy card programs is not acceptable,” Glyman said. “They trap finance teams into doing unproductive ‘busy work.’ This funding will allow us to automate away even more of those tasks so that finance teams can focus on being more strategic.”
Ramp says its acquisition of Buyer will help achieve that mission. According to the company, the Buyer negotiation-as-a-service platform saves clients an average of 27.3% on big-ticket purchases like annual software contracts.
“With the addition of the Buyer team, Ramp will be able to offer a customized and proactive approach to savings on large purchases, which goes beyond the generic perks and discounts that most corporate cards offer today,” according to the news release.
Employees of Buyer will join Ramp’s workforce of more than 100 people. Ramp plans to double its headcount by the end of this year, Kennedy said.