A corporate finance automation startup called Ramp raised $300 million
Ramp, a fintech platform that empowers businesses to manage their expenses, has secured US$300m in funding, valuing the company at nearly US$6bn.
A fintech company based in New York has created a unified platform that combines corporate cards, expense management, accounts payable, and several accounting automation tools. The goal is to simplify finance department tasks and processes.
Since its last fundraising in December 2021, the tech upstart has partnered with more than 15,000 companies. This has resulted in Ramp’s transaction volume increasing six-fold. According to the company, its customers have saved over US$600m using its platform instead of legacy finance tools and methods. This has resulted in a total savings of around 8.5m employee hours.
Over the last few months, Ramp has expanded its offerings with Ramp Plus, a paid version of its procurement software, and Ramp Intelligence, a tool that uses natural language to provide finance departments with actionable insights. Additionally, Cohere.io, an AI-based customer support platform, has been acquired by Ramp.
The Series D round for the company was recently co-led by Thrive Capital and Sands Capital. Also, it included participation from General Catalyst, Founders Fund, and other investors who have been involved with the company in the past.
Ramp is dedicated to building healthier businesses
Over the past year, Ramp has broadened its services to become the sole platform on the market that can save businesses time and money,” stated Ramp’s CEO, Eric Glyman. “Our aim is to assist our clients in developing stronger businesses, and this funding will enable us to continue growing the Ramp platform to better meet their needs. At Ramp, we consider ourselves successful when our clients can operate their businesses more efficiently.”
According to Kareem Zaki, a Thrive Capital partner, Ramp possesses an exceptional blend of a determined team that is quick at executing tasks and a vast market with powerful structural tailwinds. Ramp is revolutionizing the management of businesses by providing CFOs and business leaders with real-time transaction-level data. Consequently, more giant corporations are attracting Ramp’s attention, and the product is expanding to meet the dynamic needs of modern CFOs.
The uncertain state of the economy notwithstanding, the construction of ramps is on the rise
Amidst an uncertain macroeconomic environment, Ramp has experienced significant growth due to business leaders’ desire to manage expenses amid rising inflation and volatile costs. Ken Chenault, Chairman and Managing Director of General Catalyst and former CEO of American Express, praises Ramp as a challenger transforming the industry for the benefit of businesses everywhere. He believes that Ramp is becoming an enduring leader in the new category of finance automation, setting a new standard for companies in terms of transparency, value, efficiency, and savings in both time and money.
Valuation drops and rounds of funding at lower prices
Recently, Ramp has joined the growing list of startups that have had to adjust to the new realities of the private market. As a result of a record-shattering run, many startups have had to recalibrate their valuations in response to investors pulling back on funding and placing a greater emphasis on profitability and cash flow. Even large private companies like Klarna and Stripe have raised down rounds as the venture market has continued to slow down since its highs in 2021. Last month, OneTrust, a privacy and security startup, became one of the latest unicorns to raise a down round. It secured a $150 million round at a $4.5 billion valuation – a 12% decline from its $5.1 billion valuation after it raised a Series C in late 2020.