Corporate Card Startup Ramp Bags US$300 Million, Acquires Buyerby Fintechnews Switzerland August 25, 2021
Corporate credit card startup Ramp announced that it has raised US$300 million in a Series C funding round which now values the firm at US$3.9 billion. Ramp has raised over US$620 million to date in a mix of equity and debt financing.
Founders Fund led the round, with participation from Redpoint Ventures, Thrive Capital, D1 Capital Partners, Spark Capital, Coatue Management, Iconiq, Altimeter, Stripe, Vista Public Strategies, Lux Capital, A* Partners, Definition Capital, Honeycomb, Kinetic, and other existing investors.
Ramp said that it intends to use the new financing to accelerate development of its finance automation platform, designed to help businesses save time and money.
Additionally, Ramp has also acquired Buyer to offer a negotiation-as-a-service platform to save its clients an average of 27.3% on big ticket purchases such as annual software contracts.
With the addition of the Buyer team, Ramp will be able to offer a customised and proactive approach to savings on large purchases, beyond the generic perks and discounts that most corporate cards offer today.
In the longer term Ramp also intends to expand its product offering as a result of the Buyer acquisition.
The firm reported that it has over 2,000 US businesses using its primary spend management solution leading to a tripling of transaction volume on Ramp corporate cards since the company’s US$115 million Series B announced in April 2021.
“We founded Ramp with the intent to empower businesses. Ramp’s mission is to save our customers time and money so they can focus on their mission. Frankly the current state of finance tools and legacy card programs is not acceptable.
They trap finance teams into doing unproductive ‘busy work’. This funding will allow us to automate away even more of those tasks so that finance teams can focus on being more strategic.”
said Eric Glyman, Co-Founder and CEO of Ramp.
“Over the course of the pandemic software spending ballooned. It is now the second largest line item for companies. By finding better value on these purchases, we’ve been able to have a meaningful impact on the bottom line for many businesses.
We couldn’t be more excited about joining the Ramp team, because both of our companies care deeply about helping our customers achieve more through savings. Joining Ramp will allow us to scale this vision.”
said Kimia Hamidi, Founder and CEO of Buyer.
Featured image credit: Screengrab from Ramp