Spend management startup Ramp has confirmed to the sources that it has raised an additional $150 million at a post-money valuation of $7.65 billion. This funding round was co-led by new investor Khosla Ventures and existing backer Founders Fund. Additionally, new backers Sequoia Capital, Greylock, and 8VC participated in the raise, along with existing investors Thrive Capital, General Catalyst, Sands Capital, D1 Capital, Lux Capital, Iconiq Capital, Definition Capital, and Contrary Capital.
This raise is considered an extension of Ramp’s Series D, following its previous raise of $300 million at a lower valuation of $5.8 billion. The latest capital infusion brings Ramp closer to its previous valuation of $8.1 billion achieved in March 2022.
Since its establishment in 2019, Ramp has secured $1.2 billion in equity financing and $700 million in committed debt funding. In March 2023, co-founder and CEO Eric Glyman informed that the company experienced a 4x growth in revenue in 2022, primarily driven by its bill pay segment, although it had not yet achieved profitability. By its third anniversary in March 2022, the company had surpassed $100 million in annualized revenue, and by the summer of that year, it had exceeded $300 million in annualized revenue.
Although Ramp declined to disclose updated revenue figures, Glyman stated that in the first quarter of the current year, the startup witnessed faster quarter-over-quarter growth in total purchase volume and revenue compared to the same period in 2023, albeit on a significantly larger base.
Notably, Keith Rabois spearheaded the investment for new investor Khosla, having recently transitioned to the firm from Founders Fund. Despite Rabois’s move, Founders Fund still participated in the financing, indicating no hard feelings on their part.
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