Ramp, a corporate credit card startup founded by the team behind Paribus, a consumer finance firm acquired by Capital One in 2016, has confirmed $115M in new funding from D1 Capital Partners and Stripe, with support from Goldman Sachs, Founders Fund, Coatue Management, Thrive Capital, Redpoint Ventures, Box Group, Neo, and Contrary Capital.
The round brings total venture and debt financing raised by Ramp to $320M and raises its valuation to $1.6B.
Ramp is taking aim at a market dominated by the likes of American Express and new fintech firms such as Brex.
But rather than encouraging customers to spend more, Ramp's USP includes the deployment of card usage analytics designed to help companies identify wasteful spending.
The card's benefits were designed with high growth companies in mind, requiring no personal guarantees, 1.5% unlimited cashback, and high limits balanced with complete spend control.
Over the past six months, transaction volume on Ramp has grown by approximately 400%. A third of Ramp customers switched over from American Express, and more than 90% of customers adopted Ramp as a comprehensive spend management platform, replacing Expensify, Concur or manual alternatives.
“Like Square, Paypal, and Stripe, Ramp is rapidly emerging as a generational fintech company. Though it launched publicly just one year ago, Ramp is already viewed as the obvious choice for efficient spend management at the fastest-scaling, highest-performing startups.” says Keith Rabois, partner at Founders Fund. “We are pleased to welcome Stripe, an innovative company that we deeply admire, to the Ramp team.”
Funds from the round will be used to support growth and product development, including new features such as sophisticated card controls, automated savings, and accounting automation. With the recent hire of former Stripe and Goldman Sachs executive Colin Kennedy as chief business officer, the company will also grow its partnerships, sales, and marketing efforts.