Fintech startup Ramp secures $300 million in funding at a $5.8 billion valuation

Amid a Challenging Market, Ramp Continues to Expand and Innovate

In a significant development in the fintech space, New York-based Ramp has raised $300 million in a funding round co-led by Thrive Capital and Sands Capital. The funding comes at a post-money valuation of $5.8 billion, marking a strategic move for the company as it continues to grow and innovate.

Transaction Highlights:

  • Deal Value: Approximately $300 million.
  • Valuation: $5.8 billion post-money, a 28% drop from its previous valuation.
  • Investors: Thrive Capital, Sands Capital, General Catalyst, Founders Fund, and other existing backers.
  • Use of Funds: Accelerate product development, expand into adjacent categories, and significant hiring in the second half of this year.

Ramp's Growth and Expansion:

  • Revenue Growth: Ramp saw its revenue grow by 4x last year, led by its fastest-growing segment of bill pay, crossing $300 million in annualised revenue.
  • Acquisitions and New Offerings: Acquired Cohere.io, an AI-powered customer support tool, and entered the procurement space, focusing on complex enterprises.
  • Customer Base: More than 15,000 businesses use Ramp, compared to 5,000 in March of 2022.

Market Context:

  • Valuation Trends: Many fintech startups, including Stripe and Klarna, have seen steep declines in valuation in the past 18 months.
  • Global Funding: Fintech space funding plunged to $7.8 billion in Q2, its lowest level since 2017, with $100M+ mega-rounds totaling just $2 billion.

Looking Ahead:

Ramp's CEO, Eric Glyman, expressed confidence in the company's position, stating, "Ramp has never been in a stronger position to provide value to finance teams and those seeking to build better businesses, and we're excited to increase our pace."

Despite facing a challenging market environment, Ramp continues to make strategic moves, expanding its offerings and customer base. The new funding will enable the company to further accelerate its growth and solidify its position in the fintech industry.

About Ramp:

Founded in 2019, Ramp is a corporate card and expense automation platform that initially focused on small-to-medium-sized businesses (SMBs) but now serves businesses of all sizes. With its recent funding and expansion into new areas, Ramp is poised to continue its impressive growth trajectory.

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