Stripe-backed Ramp raises $300m at a slashed valuation

23 Aug 2023

Image: Ramp

Ramp was valued at $8.1bn but the latest funding brought this down to $5.8bn, which CEO Eric Glyman attributed to the ‘broader start-up market valuation reset’.

US fintech start-up Ramp has raised $300m to boost its expansion, hire new staff and roll out new products.

Ramp provides corporate cards to help businesses spend less and has expanded into other areas such as spend management software, procurement, travel and accounts payable. The Stripe-backed company was founded in 2019 and has been growing rapidly, achieving multiple funding rounds to keep up with demand.

The US start-up was valued at $8.1bn last year after raising $750m, in a funding round that included big names such as Stripe and the Founders Fund. But the latest funding has slashed that valuation to $5.8bn.

Ramp co-founder and CEO Eric Glyman said the additional capital was raised to “bring more value faster” to its customers. He also addressed concerns around the slashed value.

“While today’s valuation is lower than our peak in late 2021, given the broader start-up market valuation reset and increased cost of capital, we know it reflects exceptional performance by our team and support from our customers,” Glyman said. “We care deeply about delivering our investors a similarly exceptional return over the long run, but we are not interested in the short-term ups and downs of the broader market.”

Ramp claims to be serving roughly five times the number of companies it was during its previous funding round and now plans to “deliver even more” in the coming years.

“Our roadmap is ambitious and we’re excited to accelerate it,” Glyman said. “For too long, the financial services category has been focused on its own interests instead of solving real customer pain points. We’re flipping that script on its head.”

Irish-founded fintech Stripe has invested significantly in Ramp multiple times, despite the fact the two companies directly compete in the corporate cards business. In April 2021, Stripe took part in a $115m funding round that valued the company at $1.6bn – only to pump a further investment into the start-up that brought the valuation to nearly $4bn.

In 2022, Ramp was named the most innovative finance company in the world by Fast Company, which also crowned Stripe as the overall most innovative company in the world.

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Leigh Mc Gowran is a journalist with Silicon Republic