Ramp Raises $300 Million in Fintech’s Biggest Funding Move

Ramp, the fintech startup that has quickly become a force in the financial technology landscape, has secured a $300 million investment in its latest funding round. This infusion, co-led by longtime supporter Thrive Capital and new entrant Sands Capital, pushes Ramp’s valuation to $5.8 billion—a significant milestone in the company’s rapid ascent.

Since its founding in 2019, Ramp has consistently demonstrated a commitment to modernizing spend management and disrupting the traditional financial services sector. This latest funding round will enable Ramp to accelerate its strategic initiatives, including expanding its product offerings, exploring new market opportunities, and bolstering its talent pool.

The capital will be channeled into three primary areas: accelerating the development of fintech solutions, expanding into adjacent sectors to serve a broader range of enterprises, and enhancing its workforce with fresh talent to drive further innovation.

The diversity of investors backing Ramp underscores the wide appeal of its innovative offerings. Alongside Thrive Capital and Sands Capital, the funding round attracted investment from General Catalyst and Founders Fund. Notably, Ken Chenault, chairman and managing director of General Catalyst and former CEO of American Express, has lent his support—an endorsement that highlights the strategic importance of Ramp’s mission.

The fintech industry has experienced fluctuating valuations in recent months, with industry giants like Stripe and Klarna seeing declines. Despite this volatility, Ramp’s valuation aligns with market predictions. Notice.co, a firm specializing in private market pricing, estimated Ramp’s worth at $4.8 billion based on secondary share trading, close to the company’s current $5.8 billion valuation—a reflection of Ramp’s consistent market performance and investor confidence.

Ramp’s growth trajectory has been nothing short of impressive. Co-founder and CEO Eric Glyman revealed that the company’s revenue quadrupled over the past year, driven by the expansion of its bill pay services. The company crossed the $100 million mark in annualized revenue before its third anniversary in March 2022, and it recently surpassed $300 million in annualized revenue—a testament to its robust business model and strategic expansion efforts.

Originally launched as a corporate card provider, Ramp has steadily broadened its suite of services to include bill pay, vendor management, and travel expense management, among other features. This diversification has allowed Ramp to serve a wide spectrum of businesses, from startups to large enterprises, and even unexpected sectors like agriculture.

With its $5.8 billion valuation, Eric mentioned in his post, “As someone who started my career working 12 hours/day in Excel, this release makes me really happy – we hope you love it as much as we and our beta testers have!”