Financial technology firm, Ramp became the latest fintech to hit the valuation of $8 billion after the company secured $750 million in funding. The raise includes $200 million in equity and $550 million in debt financing.
The $200 million equity round was led by Founders Fund. In addition, the investment round saw participation from the company’s existing investors, including D1 Capital Partners, Thrive Capital, Redpoint Ventures, Coatue Management, Iconiq, Altimeter, Stripe, Lux Capital, Vista Public Strategies, Spark Capital and Definition Capital.
As far as debt financing is concerned, Ramp received support from various financial institutions. Citi provided support worth $300 million while Goldman Sachs provided $150 million to facilitate Ramp’s global expansion.
"We are pursuing an extraordinary opportunity to overhaul an industry that historically has been misaligned and out-of-touch with the needs of its customers," said Eric Glyman, the Co-Founder & CEO at Ramp.
"Since day one, Ramp has been designed to save our customers time and money, which is fueling our rapid growth. We've delivered over $135 million in savings for our customers to date. We're helping companies close their books in eight hours instead of the industry median of eight days, freeing up 3.5 million hours of manual work. None of our competitors can say the same. With this funding, we will continue to help even more businesses manage their money easier, faster and smarter,” Glyman added.
Revenue
In the recent announcement, Ramp highlighted growth in its revenue and the total number of customers during 2021. Last year, the fintech firm witnessed nearly 10x growth in revenues. The company has over 5,000 businesses on its platform.
"One of our core differentiators at Founders Fund is the willingness to double, triple, quadruple down when a company is executing at the highest levels," said Keith Rabois, a General Partner at Founders Fund.
