Ramp has raised $1.85 billion in new funding at a $60 billion valuation as the fintech startup expands its financial management platform and builds new products around artificial intelligence (AI).
The New York-based company announced the primary funding round on October 15, with Dragoneer Investment Group leading the investment alongside Thrive Capital, Founders Fund, Sands Capital, and Avenir Growth. Other investors included Fidelity Management & Research Company, T. Rowe Price, GIC, Coatue, and several existing backers.
The latest raise comes just four months after Ramp raised $750 million at a $44 billion valuation. With the new investment, the company has now raised approximately $5 billion in total equity financing.
Ramp’s Business Has Expanded Beyond Expense Management
Founded in 2019, Ramp initially became known for its corporate cards and expense management software, but the company has gradually expanded into other areas of business finance.
Its platform now covers payments, procurement, bill payments, accounting, fraud detection, travel, and other financial operations.
Ramp says more than 85,000 businesses now use its products, compared with 70,000 customers in June, and these businesses collectively account for more than $275 billion in annualised purchase volume, a 175% increase from the previous year.
The company has also crossed $2 billion in annualised revenue and is generating positive cash flow. Ramp said its revenue is growing 25% faster than it was at the same point last year, while the number of enterprise customers generating more than $100,000 in revenue for the company has increased 113% year over year.
AI Is Becoming a Bigger Part of Ramp’s Platform
Ramp is also using its financial infrastructure to build products around the growing cost of AI.
One of its recent products, AI Token Spend Management, gives finance and technical teams a way to track and control how much they spend on AI models across different providers, teams, models, users, and API keys.
The company also launched Router.com, a service that routes AI requests based on performance and cost. Ramp says the product can reduce inference costs by up to 40%.
Another recent product is Glass, an AI workspace designed to help organisations collect and share the prompts, automations, and skills employees create while using AI.
These products come as businesses increase their use of AI while facing a growing need to understand how much these systems cost and where that spending is going.
What Ramp Plans to Build From Here
The latest funding gives Ramp more capital as it continues expanding its financial platform and AI products.
The company’s growing customer base is also using more of its products, with Ramp saying the majority of its customers now use at least two products, while a quarter use three or more.
This has helped the company move from providing corporate cards and expense management to handling a wider range of financial operations for businesses.
At a $60 billion valuation, Ramp is now one of the most highly valued fintech startups focused on corporate financial management. Its latest funding also shows how investors are continuing to back companies that combine financial software with AI as businesses look for more ways to automate their operations and control costs.
