Ramp, a pioneering spend management platform, has successfully raised an additional $150 million, propelling its post-money valuation to an impressive $7.65 billion.
This latest funding round was co-led by new investor Khosla Ventures and existing supporter Founders Fund, with significant contributions from prominent backers including Sequoia Capital, Greylock, and 8VC. Notable existing investors such as Thrive Capital, General Catalyst, Sands Capital, D1 Capital, Lux Capital, Iconiq Capital, Definition Capital, and Contrary Capital also participated in the round.
Described as an extension of Ramp's Series D, the fintech company had previously raised $300 million at a valuation of $5.8 billion. This latest infusion of capital brings Ramp closer to its previous peak valuation of $8.1 billion achieved in March 2022.
Since its inception in 2019, Ramp has secured an impressive $1.2 billion in equity financing and an additional $700 million in committed debt funding.
CEO Eric Glyman highlighted Ramp's remarkable growth trajectory, with revenue quadrupling in 2022, primarily driven by its burgeoning bill pay segment. Despite not yet reaching profitability, Ramp achieved significant milestones, surpassing $100 million in annualized revenue by its third birthday in March 2022 and subsequently reaching $300 million in annualized revenue.
Although specific revenue figures were not disclosed, Glyman revealed that Ramp's total purchase volume and revenue growth in the first quarter of this year outpaced the same period in 2023, indicating robust momentum.
The investment from Khosla Ventures, led by Keith Rabois, underscores Ramp's commitment to innovation, particularly in artificial intelligence (AI). Rabois, who transitioned from Founders Fund to Khosla Ventures, played a pivotal role in the investment, signaling a continued partnership between Ramp and Founders Fund.
Glyman emphasized Ramp's dedication to leveraging AI capabilities to streamline processes, enhance spending insights, and drive informed decision-making. The company's recent integration with Microsoft Copilot exemplifies its strategic focus on incorporating AI into its offerings.
Looking ahead, Ramp plans to allocate the funds towards further innovation and acquisitions. Recent acquisitions, such as AI-powered startup Venue, demonstrate Ramp's strategic expansion in procurement solutions. With a workforce of approximately 730 employees, Ramp is well-positioned to continue its trajectory of growth and innovation in the spend management space.