Business card and expense management startup Ramp raised $115m at a valuation of $1.6bn, making it the latest entry in the growing list of unicorns this week.
The new funding round was led by D1 Capital Partners and Stripe, along with Goldman Sachs, Founders Fund, Coatue Management, Thrive Capital, Redpoint Ventures, Box Group, Neo and Contrary Capital. It brings the total venture and debt financing Ramp has raised to $320m.
This new funding also comes four months after its $30m Series A3 financing from D1 Capital and Coatue.
The new funds will be used to support growth and product development, such as the addition of new payment capabilities like sophisticated card controls, accounting automation and automated savings. It will also boost the firm’s teams across departments.
Founded in 2019 by Eric Glyman, Gene Lee and Karim Atiyeh, the New York-based startup generates revenue from taking a portion of interchange fees, along with a monthly charge from clients using higher-end software functionalities.
Boasting of clients such as audio app Clubhouse and telehealth company Ro, the firm’s transaction volume grew by roughly 400% in the past six months and is approaching $1bn in transaction volume, it claimed. Ramp said a third of its customers came from American Express and more than 90 adopted its service as a replacement for platforms like Concur or Expensify.
Commenting on the firm’s growth, Glyman said, “Whether at fast-scaling unicorns like Ro, Better, ClickUp, Applied Intuition and more or at more traditional businesses seeking higher financial efficiency, Ramp has quickly become the spend management platform of choice.”
Clearly, the firm is going from strength to strength as it also brought on former Stripe and Goldman Sachs executive Colin Kennedy as chief business officer in the past month.
Ramp is not the first FinTech to score investment from Stripe. Earlier this year it invested in Check and Fast as well as has shares in UK neobank Monzo.
The payments giant founded by Irish brothers John and Patrick Collison raised $600m itself recently at a $95bn valuation.
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