Ramp, a US-based provider of a corporate card for controlling spending, raised $750m yesterday in debt and equity financing from investors including digital payment technology provider Stripe, valuing it at $8.1bn.
Founders Fund led the $200m equity portion of round, which included Thrive Capital, Redpoint Ventures, D1 Capital Partners, Spark Capital, Coatue Management, Iconiq Capital, Altimeter Capital, Lux Capital, Vista Public Strategies, Definition Capital, Avenir Growth Capital, 137 Ventures, Declaration Partners, General Catalyst and unnamed individuals.
The company also obtained $550m in debt financing from financial services firms Citi, which put up $300m, and Goldman Sachs, which provided $150m.
Founded in 2019, Ramp offers an interest-free corporate card along with an expense management platform designed to save companies time and money. It claims it increased revenue nearly tenfold in 2021 and will use the proceeds to expand its travel management and expense report automation products and integrate with systems such as Amazon Business, Gmail and Lyft.
The company’s valuation has more than doubled since a $300m series C round led by Founders Fund in August 2021 and backed by Stripe, Altimeter, Redpoint, Thrive Capital, D1 Capital, Spark Capital, Coatue, Iconiq, Vista Equity Partners’ Vista Public Strategies unit, Lux Capital, A* Partners, Definition Capital, Honeycomb and Kinetic Ventures at a $3.9bn valuation.
Stripe had previously taken part in Ramp’s $115m series B round, which closed in April 2021 at a $1.6bn valuation when the corporate led a $50m second tranche, following a $65m close led by D1 Capital Partners. The company had previously disclosed $62m in funding and the series B hiked its total debt and equity financing to $320m.
Ramp’s chief executive, Eric Glyman, said: “We are pursuing an extraordinary opportunity to overhaul an industry that historically has been misaligned and out-of-touch with the needs of its customers.
“Since day one, Ramp has been designed to save our customers time and money, which is fuelling our rapid growth. We have delivered over $135m in savings for our customers to date. We are helping companies close their books in eight hours instead of the industry median of eight days – freeing up 3.5 million hours of manual work. None of our competitors can say the same.”
