Expense management startup Ramp has raised an additional $150 million at a post-money valuation of $7.65 billion, the company confirmed to TechCrunch today.
New investor Khosla Ventures and existing backer Founders Fund co-led the fundraising, which also included participation from new backers Sequoia Capital, Greylock and 8VC. Other existing investors Thrive Capital, General Catalyst, Sands Capital, D1 Capital, Lux Capital, Iconiq Capital, Definition Capital, Contrary Capital also invested money in the latest round.
The raise is characterized as an extension of Ramp’s Series D, in which the fintech company raised $300 million at a valuation 28% lower at $5.8 billion. The latest capital injection brings it closer to Valuation of $8.1 billion it had reached March 2022.
With the raise, Ramp has secured $1.2 billion in equity financing and $700 million in committed debt financing since its inception in 2019.
In March 2023, co-founder and CEO Eric Glyman told TechCrunch that the company saw its revenue increase 4x in 2022 – thanks to its fastest-growing bill payment segment – but that it does not was not yet profitable. The company had gone through $100 million in annualized revenue ahead of its third anniversary in March 2022, and said last summer it had surpassed $300 million in annualized revenue.
While the company declined to reveal updated revenue numbers, Glyman told TechCrunch today that in the first quarter of this year, Ramp’s total purchase volume and revenue growth increased “more quickly from one quarter to the next than during the same period in 2024, at a much greater rate. base.”
Notably, Keith Rabois led the investment of new backer Khosla, after recently joined the company after leaving Founders Fund. Apparently, there were no hard feelings from the Founders Fund, which still participated in the financing, even without Rabois.
The relationship with Founders Fund “is so deep,” Glyman said, because the company was its first institutional investor since its “very early days.” While working there with the entire team, Glyman pointed out partners Napoléon Ta and Delian Asparouhov as being the “most involved”. (It should be noted that Rabois originally represented Founders Fund and has served on the Ramp board since 2019.)
Glyman said he believes Ramp’s continued focus on artificial intelligence (AI) also helped spark Khosla’s interest. (Khosla is an early investor in OpenAI).
“They were so far ahead of the investment curve with OpenAI and what’s happening in the AI world that, of course, we were excited,” he added.
Ramp’s customers include more than 25,000 companies across various industries. Interestingly, venture-backed startups represent a “minority” of its customer base, which includes farms, stores, hospitals and nonprofits.
Glyman told TechCrunch that the new funding will be used to “triple down” innovation, including using artificial intelligence (AI) capabilities “to automate tedious processes, provide deeper insights into spending, improve capabilities decision-making, and much more.” Last November, Ramp announced a new integration with Microsoft Copilot as part of its efforts to integrate AI into its offering.
“I think there’s this shift in AI investments, moving primarily from these big infrastructure models to the application layer,” Glyman said.
Ramp will also use the money for acquisitions. In January, the company announced that he had acquired Venue, an AI-based startup by expanding its supply offering. In general, over the past few years, Ramp has embarked on what might seem like a buying spree. In August 2021, Ramp purchased Buyer, a “trading-as-a-service” platform that claimed to allow its customers to save money on large purchases such as annual software contracts. Then last year, Ramp acquired Cohere.io (not to be confused with OpenAI competitor Cohere). Cohere.io was a startup that created an AI-powered customer support tool.
Currently, Ramp has about 730 full-time employees, up from 495 a year ago.
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