Fintech

Ramp secures $150M in funding, led by Khosla Ventures and Founders Fund, at a $7.65B valuation.

By Business OutstandersPUBLISHED: April 22, 17:40
Ramp
Image Credits: Ramp / Ramp co-founders Karim Atiyeh, Eric Glyman and Gene Lee

Spend management startup Ramp has raised another $150 million in funding, bringing its valuation to $7.65 billion.

The round was co-led by new investor Khosla Ventures and existing backer Founders Fund, with participation from Sequoia Capital, Greylock, and 8VC. The company's total equity financing now stands at $1.2 billion, and its committed debt funding amounts to $700 million since its inception in 2019.

Ramp's revenue grew by 4x in 2022, led by its fastest-growing segment of bill pay. Although the company was not yet profitable, it achieved a $100 million annualized revenue before its third birthday in March 2022 and surpassed $300 million in annualized revenue the following summer. The company plans to use the new funding to enhance its AI capabilities, automate processes, provide deeper insights into spending, and improve decision-making.

Ramp's customer base consists of over 25,000 companies across various industries, including farming, retail, healthcare, and nonprofits. The company serves venture-backed startups as a minority. The new funding will also be allocated towards acquisitions, following Ramp's history of strategic purchases in recent years.

In January, Ramp acquired AI-powered startup Venue to expand its procurement offering. Previously, the company purchased Buyer, a "negotiation-as-a-service" platform, and last year, Ramp acquired Cohere.io, a startup that developed an AI-powered customer support tool. As of now, Ramp employs around 730 full-time employees, an increase from 495 employees a year ago.

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