In a round led by Founders Fund, New York-based business card and expense management platform Ramp has secured $300 million in new funding. The Series C round more than doubles the firm’s total equity capital raised, and gives Ramp a valuation of $3.9 billion.
Ramp’s 5-in-1 approach to enterprise spending management offers zero-fee corporate cards, accounting automation, billpay (including invoices, approvals, and payments), as well as expense management and real-time reporting that delivers insights that can be key to uncovering further savings opportunities. The platform offers automated expense reporting that includes collection and verification of more than 90% of receipts, and smart-rule powered automated reconciliation which, along with multi-entity and custom field support, enables accounting teams to close books up to 86% faster. Ramp integrates out-of-the-box with more than 100 different accounting, productivity, and security software packages from QuickBooks and Xero, to Slack and 1Password, to Google Suite and Okta.
According to company co-founder and CEO Eric Glyman, Ramp customers are saving 3.3% on average after switching to Ramp. This comes courtesy of a combination of savings insights, real-time spend reporting, and a 1.5% cashback policy. “This is tangible money saved that customers are reinvesting into activities that actually grow their business,” he said.
In addition to its funding announcement, Ramp also announced an acquisition. The company purchased “negotiation-as-a-service” platform Buyer which helps facilitate big-dollar business costs such as annual software contracts. The acquisition was the first for Ramp, which was founded in the spring of 2019; terms of the transaction were not immediately disclosed.
In a blog post at the Ramp website, Glyman noted that the funding raised, as important as it is, was not “the main news.” Instead, Glyman underscored the value of the financing automation platform Ramp is building, a platform that will help business save “even more time and money that we’ve done to date.” Glyman added that this will enable the company to move from providing savings insights based on the past to instead being “able to proactively save you money before you spend.” Everything from helping companies save money on travel expenses to enabling them to keep software costs low are on Ramp’s radar.
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