Ramp, a spend management startup has secured another significant round of funding, raising $150 million at a valuation of $7.65 billion. Co-led by Khosla Ventures and Founders Fund, the raise also saw participation from new investors Sequoia Capital, Greylock, and 8VC, alongside existing backers Thrive Capital, General Catalyst, Sands Capital, D1 Capital, Lux Capital, Iconiq Capital, Definition Capital, and Contrary Capital.
This infusion of capital, characterized as an extension of Ramp’s Series D, brings its total equity financing to $1.2 billion and committed debt funding to $700 million since its inception in 2019. The latest round helps bridge the gap between its previous valuation of $5.8 billion and its earlier peak of $8.1 billion achieved in March 2022.
Despite not disclosing updated revenue figures, Ramp has demonstrated substantial growth, with its fastest-growing segment being bill pay. CEO Eric Glyman noted that in the first quarter of 2024, Ramp’s total purchase volume and revenue growth surpassed the same period in 2023, indicating continued momentum.
Notably, Khosla Ventures’ investment, led by Keith Rabois, signifies a strategic alignment with Ramp’s emphasis on artificial intelligence (AI) technologies. This focus on AI aims to automate processes, provide deeper spending insights, and enhance decision-making capabilities, aligning with Khosla’s early investment in OpenAI.
With over 25,000 diverse companies as customers, including venture-backed startups, farms, hospitals, and nonprofits, Ramp plans to triple down on innovation and AI integration. Additionally, the funding will facilitate acquisitions to expand its procurement offering, building on previous acquisitions like Venue and Cohere.io.
As Ramp continues its growth trajectory, the company’s workforce has expanded to approximately 730 full-time employees, reflecting its commitment to innovation and customer service excellence in the spend management space.
