Ramp Secures $500 Million Series E-2 Funding, Boosting Valuation to $22.5 Billion
Expenditure management startup Ramp has successfully raised an additional $500 million in its Series E-2 funding round, resulting in an impressive valuation of $22.5 billion. This significant investment was confirmed in an announcement by Crunchbase News on Wednesday.
This new funding round follows closely after Ramp raised $200 million in its Series E funding earlier, which elevated its valuation to $16 billion. The recent round was spearheaded by Iconiq Capital, with contributions from established investors such as Founders Fund, Khosla Ventures, General Catalyst, Stripe, Citi, Lux Capital, and Sequoia Capital. Noteworthy new investors include Lightspeed Venture Partners, GV (formerly Google Ventures), T. Rowe Price, and Operator Collective.
Ramp’s Rapid Growth Amid Market Volatility
The swift pace at which Ramp has secured funding and expanded its operations comes as the fintech sector experiences a tumultuous period. Earlier this year, in March, Ramp nearly doubled its estimated valuation to $13 billion following a $150 million secondary share sale, showcasing its ability to thrive even in challenging market conditions.
Since its founding in 2019, Ramp has successfully raised a total of $1.9 billion in equity financing, solidifying its position in the financial technology landscape. The company has also reported a customer base of over 40,000, which includes industry giants like Shopify, Anduril Industries, Notion, and Cursor. Ramp has begun generating cash flow earlier this year, further indicating its operational success.
Innovative AI Solutions Launched
In a recent development, Ramp introduced what it calls the “first of many” autonomous AI agents, designed to assist users in significantly reducing compliance violations. According to CEO and co-founder Eric Glyman, Ramp’s users are currently processing three times more transactions per minute than just two years ago, with a target of achieving 30 times more efficiency by 2027.
In a recent blog post, Glyman emphasized the company’s commitment to innovation, stating, “45 days ago, I mentioned, ‘Let the robots hunt the receipts,’ and we secured $200 million to make this vision a reality.”
Exploring Revenue Channels
While Ramp has not disclosed detailed income figures, reports indicate that the company surpassed $700 million in annualized revenue as of January. The primary source of Ramp’s revenue stems from the interchange fees associated with its card services. Additionally, the company generates income through transaction fees on invoice payments, software as a service (SaaS) subscriptions, foreign currency exchanges, and affiliate commissions through its travel products, among other avenues.
Conclusion
As Ramp continues to scale and innovate within the fintech sector, it remains poised for further growth and impact. The recent funding rounds and expanding customer base signify a strong market presence, while the introduction of AI-driven solutions sets the stage for a more efficient financial management landscape.
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