Fintech firm Ramp more than doubles valuation to US$8.1b after latest fundraise

[BENGALURU] Ramp, a fintech startup that offers corporate cards and software for managing employee expenses, has more than doubled its valuation to US$8.1 billion after a funding round led by billionaire Peter Thiel's Founders Fund.

The New York-based company, whose competitors include American Express, said on Monday (Mar 21) it sold US$200 million worth of equity and raised US$550 million in debt.

Existing investors that took part in the round include D1 Capital Partners, Thrive Capital, Redpoint Ventures, Coatue Management and Stripe. General Catalyst and Avenir Growth Capital were among the new investors.

Ramp's platform is used by over 5,000 businesses and its revenue grew nearly tenfold in 2021. The 3-year-old startup makes money by taking a share of the fees merchants pay on every transaction through its card.

Seeking to capitalise on the rebound in business travel from pandemic lows, the fintech firm recently launched the Ramp for Travel software in partnership with companies like Lyft and WeWork that promises better travel management for employees.

"The largest single sector of spending in a quarter is travel and entertainment. As people are travelling again, (this) is a natural place for us to grow revenues in," co-founder and chief executive officer Eric Glyman said.

Ramp was valued at US$3.9 billion in August after its previous fundraise, which was also led by Founders Fund.

The startup plans to double its workforce of 275 this year and will open a new office in Miami, it said. REUTERS