Ramp Valuation Doubles to $13B in Secondary Share Sale

Ramp's Valuation Surges to $13 Billion

Expense management company Ramp has experienced a significant increase in its valuation, nearly doubling to $13 billion following a $150 million secondary share sale announced on Monday.

Investment Details

The secondary shares were purchased by both new and existing investors. These include prominent venture capital firms such as Stripes, GIC, Avenir Growth, Thrive Capital, Khosla Ventures, General Catalyst, Lux Capital, 137 Ventures, and Definition Capital.

Valuation Growth

This represents substantial growth for the fintech startup. Last April, Ramp was valued at $7.65 billion during a Series D extension round led by Khosla Ventures and Founders Fund.

Since its founding in 2019, Ramp has secured a total of $1.2 billion in equity financing, alongside $700 million in committed debt funding.

Customer Base Expansion

Ramp’s co-founder and CEO, Eric Glyman, previously stated the company had over 25,000 corporate clients across diverse sectors.

Currently, Ramp has expanded its customer base to exceed 30,000 businesses. The company has also reported more than doubling its enterprise business over the past year.

Financial Performance

Ramp’s payment volume, encompassing both card transactions and bill payments, has risen to $55 billion. This is a considerable increase from the $10 billion recorded in January 2023.

Companies utilizing Ramp’s services include Poshmark, Anduril, Notion, and Cursor, as highlighted by Glyman in a recent blog post.

Operational Efficiency

In 2024, Ramp maintained an average monthly burn rate of less than $2 million. Glyman attributes this efficiency to the integration of AI within the company’s operations.

“We’re ensuring our customers are at the forefront of this transformation,” Glyman stated, emphasizing the impact of AI on modern business practices.

Product Diversification

Over time, Ramp has established itself as a key player in the corporate card and expense management sector.

The company has broadened its offerings to include travel solutions, bill payment services, and a new treasury product launched in January, positioning it within the digital banking landscape.

Revenue and Profitability

While the privately held company has not disclosed current revenue figures, it previously experienced a 4x revenue growth in 2022, driven by its bill pay segment.

Ramp surpassed $100 million in annualized revenue before its third anniversary in March 2022 and exceeded $300 million in annualized revenue by the summer of 2023.

Competitive Landscape

Brex, a competitor, anticipates reaching $500 million in annual net revenue by 2025. They have also reported an 80% year-over-year growth in their enterprise business.

Brex currently serves over 150 public companies, including Anthropic, Arm, Robinhood, ServiceTitan, Sonos, and Wiz.

Revenue Streams

Ramp generates revenue primarily through interchange fees from Ramp card transactions and fees associated with bill payments.

Additional revenue sources include SaaS subscriptions for its Plus offering, foreign exchange fees from international transactions, and affiliate commissions from travel bookings.

The new Treasury product will also contribute revenue through spreads earned on aggregate balances held in customer business accounts.

Company Growth

By the end of 2024, Ramp’s employee count exceeded 1,000, an increase from 730 at the time of its last funding round in April.

Future Plans

Glyman indicated in January that Ramp is considering a potential IPO in the future.

Market Position

Ramp operates in a competitive market alongside companies like Brex, Navan, Mercury, and others.

Mercury is reportedly seeking new funding led by Sequoia, potentially valuing the company at over $3 billion – double its valuation from July 2021.

Note: This article was updated after publication to provide clarification regarding Brex’s customer base.

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