Fintech startup Ramp nearly doubles valuation to $13B in secondary share sale

Expense management startup Ramp has nearly doubled its valuation to $13 billion after a $150 million secondary share sale, the company announced Monday morning.

New and existing backers including VC Stripes, GIC, Avenir Growth, Thrive Capital, Khosla Ventures, General Catalyst, Lux Capital, 137 Ventures and Definition Capital bought the secondaries from employees and early investors.

It’s a massive bump in valuation for fintech startup Ramp, which was valued at $7.65 billion last April when it raised $150 million in a Series D extension co-led by Khosla Ventures and Founders Fund. With that raise, Ramp had secured $1.2 billion in equity financing and $700 million in committed debt funding since its 2019 inception.

At that time, Ramp co-founder and CEO told TechCrunch that Ramp counted over 25,000 companies across a variety of industries as customers including Anthropic, Arm, Robinhood, ServiceTitan, Sonos and Wiz.

Today, Glyman said that Ramp has grown to over 30,000 customers and that it more than doubled its enterprise business in the last year. He also noted that the startup has seen its payment volume across card transactions and bill payments spike to $55 billion, up from $10 billion in January 2023. In a blog post, Glyman called out Poshmark, Anduril, Notion and Cursor as companies that use Ramp.

Ramp also burned less than $2 million per month on average in 2024, said Glyman, who cited “the benefits of AI” in its own operations.

“ AI is fundamentally changing how businesses operate, and we’re ensuring our customers are at the forefront of this transformation,” he said.

Over the years, Ramp has built a name for itself in the corporate card and expense management space. It’s branched out into travel, bill pay, and in January, Ramp released a new treasury product that had it encroaching into digital bank territory. 

For now, the private company is staying mum on its current revenue figures. In March 2023, Glyman told TechCrunch that Ramp saw its revenue grow by 4x in 2022 — led by its fastest-growing segment of bill pay — but was not yet profitable. 

The company had crossed $100 million in annualized revenue before its third birthday in March 2022 and said in the summer of 2023 that it had passed $300 million in annualized revenue. Brex in February was reported to be expecting its annual net revenue to reach $500 million in 2025, according to a person familiar with the company’s operations as cited by Bloomberg and The Information.

The company primarily makes money from interchange fees charged for every swipe with a Ramp card as well as from transaction fees on bill payments. It also earns SaaS revenue from customers who upgrade to its Plus offering, through foreign exchange from international money movement, affiliate fees when flights or hotels are booked through its travel product, among other things.

With the addition of its Treasury product, Ramp will also earn a spread from its bank partners on aggregate balances across all funds held in a customer’s business account.

The startup crossed the 1,000 employee mark by the end of 2024, Glyman said — up from 730 at the time of its raise last April.

Looking ahead, Glyman in January said Ramp is eyeing an IPO in the long term.

Ramp operates in a crowded space that includes the likes of Brex, Navan, Mercury and others. 

Mercury is reportedly raising new funds in a round led by Sequoia at a valuation of over $3 billion, which would be twice what it was valued at in July of 2021 at the time of its last raise, according to Bloomberg.Want to reach out with a tip? Email me at [email protected] or send me a message on Signal at 408.204.3036. You can also send a note to the whole TechCrunch crew at [email protected]. For more secure communications, click here to contact us, which includes SecureDrop (instructions here) and links to encrypted messaging apps.