Ramp, a spend management startup, announced today that it raised $300 million in Series C funding. This round values the company at $3.9billion.
This is more than twice the $1.6 billion Ramp, a New York-based company, was valued at at April's Series B.
The latest round was led by Founders Fund. It brings the total amount of equity and debt raised by fintechs to $625 million, since the company's March 2019 inception. Redpoint Ventures and Thrive Capital were also involved in financing the round. Spark Capital, D1 Capital Partners and Spark Capital all participated. Coatue Management, Iconiq. Altimeter. Stripe, Lux Capital as well as A* Partners, Definition Capital, and other backers, Coatue Management. Ramps $15 Million Series A was also managed by Founders Fund in February 2020.
Ramp's corporate card was launched in August 2019. It has been a successful year. Ramp, which launched its corporate card in August 2019, has had a great year. According to Eric Glyman, CEO and co-founder of Ramp, Ramp's transaction volume has increased by 1,000% year over year. Ramp's revenue increased by the same amount due to its business model, which is based mainly on interchange fees.
Ramp is used by a wide variety of customers, including startups/unicorns like Ro, DoNotPay and Better, ClickUp, Applied Intuition, and established businesses such as Bristol Hospice, Walther Farms and Douglas Elliman.
Glyman explained to TechCrunch that the pace of business growth has been much faster than expected. We are experiencing the fastest percentage growth in any month this year, even August.
These large growth numbers are often more common in the early stages of a company and tend to decrease as the company matures.
Keith Rabois, Founders Funds: I have continued to invest in the company as it grows because it is rare to find a business that has a growing rate. Growth slows when a company grows, but Ramps product demand is increasing as the team increases awareness and strengthens its product offering.
Ramp also today announced its acquisition of Buyer, a negotiation-as-a-service platform that claims to save its clients an average of 27.3% on big-ticket purchases, such as annual software contracts.
Ramp, Glyman stated that Ramp will now be able offer customers a personalized and proactive approach to saving on large purchases with the addition of the Buyer team of 10 people.
He noted that there are now more SaaS companies for B2B growth than ever before and that they charge better than ever. Buyer is seen as the leader in a new generation of startups trying to turn the tables and help customers negotiate lower rates. Although large companies may have their own procurement departments, Buyer can identify new contracts and negotiate them down for smaller businesses.
It has helped its customers save approximately 27% on SaaS contract.
Glyman stated that they look forward to adding these figures to the savings businesses have gotten by incorporating them.
Ramp recognized that the partnership was already strong and decided to buy it.
Ramp plans to increase its product offerings over time as a result. Ramp combines Buyers team and benchmarking spend data from millions transactions on its platform to help customers negotiate the best rates on everything that can be bought with a card. This goal is to shift purchasing power back to buyers.
Ramp also offers 1.5% cashback on all purchases, helping customers to save money. This includes helping them to identify and cancel duplicitous subscriptions, and redundancies in licenses. It also informs companies about better pricing. This could be used to inform customers that they can save 20% by switching from a monthly rate to an annual one. Customers can also save money by getting rid software such as Concur, Expensify and Bill.com. This helps them manage their expenses. Ramp claims its customers can save on average 3.3% each year by switching to Ramp for their corporate card spending.
Glyman claims that merchant blocking was added to the corporate credit card earlier this year. This feature has been one of the most popular features for the company since its inception.
The company intends to use the new capital to accelerate the development of its financial automation platform. The company will also continue to hire to increase its 150-strong workforce. Ramp began the year with 65 employees and was currently employing about 100 people at the time it received its April raise.
Glyman stated to TechCrunch that hiring is the most important use of our capital.
The startup will also invest heavily in product development, which includes expansion into wider B2B payments and marketing and awareness. It will also be looking for acquisition targets.
Ramp makes its money mainly through interchange fees. However, Glyman previously told me that Ramp considers itself a SaaS operator.
He stated that our long-term strategy was to create great software.
There is no doubt that the spend management market is heating up. Brex, in its first major acquisition, announced last week that it would acquire Weav, a one-year-old baby, for $50 million. After raising $425 million in Series D funding, San Francisco-based Brex was valued at $7.4Billion. Ramp is more focused on early-stage startups, while it tends to serve larger, established companies.
