Ramp Revenue Doubles to $700M - Fintech Startup Growth

Ramp Achieves Significant Revenue Growth

Fintech company Ramp has surpassed $700 million in annualized revenue as of January, according to an informed source within the organization.

The company initially exceeded $100 million in annualized revenue prior to its third anniversary in March 2022. Subsequently, it reached $300 million by August 2023, and has now more than doubled this figure in under 18 months.

Market Share and Growth Potential

Although Ramp has not publicly disclosed its revenue figures, CEO and co-founder Eric Glyman revealed to TechCrunch that the company currently represents “between 1-2% of the U.S. card market.” Glyman acknowledged this is substantial for a relatively new enterprise, but also emphasized “a considerable opportunity for further expansion.”

Strategic Reinvestment and Profitability

Ramp is deliberately operating without current profitability, prioritizing reinvestment of its capital. Glyman stated that profitability could be achieved “very quickly” if desired. He further explained that “over half of every dollar spent on payroll is allocated to R&D,” differentiating Ramp from many other software companies.

Capital Reserves and AI Implementation

The company maintains ample capital reserves to support its current operational losses. A $150 million Series D extension, co-led by Khosla Ventures and Founders Fund, was secured last April.

Notably, Glyman highlighted that AI is contributing to a reduction in the company’s monthly cash burn, now below $2 million.

AI-Driven Efficiency Gains

“Every team within Ramp is leveraging AI to enhance their workflows and increase output, spanning sales, marketing, product development, and engineering,” Glyman noted.

For instance, AI is assisting sales development representatives in scheduling a greater number of meetings. The implementation of data signals and automation ensures that leads are “pre-qualified” before representatives engage in phone conversations.

A recent example of this efficiency is Ramp’s production of a Super Bowl advertisement, completed from initial concept to finalization in just 10 days.

“AI tools, such as Midjourney, enabled us to evaluate hundreds of different concepts within a mere 3 days prior to filming,” Glyman explained to TechCrunch. “This level of speed would have been unattainable previously.”

Valuation Increase and Funding

Ramp announced on Monday a near doubling of its valuation to $13 billion following a $150 million secondary share sale. The sale included participation from both new and existing investors, including VC Stripes, GIC, Avenir Growth, Thrive Capital, Khosla Ventures, General Catalyst, Lux Capital, 137 Ventures, and Definition Capital, who purchased shares from employees and early investors.

This represents a significant increase in valuation for Ramp, which was previously valued at $7.65 billion last April during the $150 million Series D extension. To date, Ramp has secured $1.2 billion in equity financing and $700 million in committed debt funding since its founding in 2019.

Employee Growth and Revenue Streams

The startup’s employee base exceeded 1,000 by the end of 2024, an increase from 730 at the time of last April’s funding round.

Ramp generates revenue primarily through interchange fees associated with Ramp card transactions, as well as transaction fees on bill payments. Additional revenue streams include SaaS revenue from customers utilizing the Plus offering, foreign exchange fees from international transactions, and affiliate fees from travel bookings made through its travel product.

With the introduction of its Treasury product, Ramp will also realize a spread from its banking partners on aggregated balances held in customer business accounts.

For inquiries or tips, please contact maryann@techcrunch.com or via Signal at 408.204.3036. Alternatively, reach out to the TechCrunch team at tips@techcrunch.com. For enhanced security, click here to contact us, including SecureDrop (instructions here) and encrypted messaging options.