Ramp, a company specializing in expense management solutions, announced on Thursday that it successfully secured $1.85 billion in its latest funding round, elevating its valuation to $60 billion. This comes just four months after it raised $750 million, which valued the company at $44 billion.
The funding round was co-led by prominent investment firms including Dragoneer Investment Group, Thrive Capital, Founders Fund, Sands Capital, and Avenir Growth.
The company reported a significant increase in its annualized revenue, which has surpassed $2 billion, a rise from $1.5 billion noted in June. This growth trajectory is 25% faster than the growth rate recorded during the same period last year. Ramp now facilitates an impressive annualized purchase volume exceeding $275 billion, reflecting a 175% increase compared to the previous year. The startup has grown its customer base to 85,000, up from 70,000 in June, including high-profile clients such as Visa, Uber, Shopify, Robinhood, Anduril, Notion, Cursor, and Figma.
This new funding reflects Ramp's efforts to broaden its services beyond traditional expense management. The company is now venturing into payments, fraud detection, procurement, vendor management, and recently, accounting.
As part of its forward-thinking approach, Ramp is integrating artificial intelligence into its offerings by embedding AI agents in its various services, including procurement and budget management. It has introduced a corporate credit card tailored for AI agent utilization and launched a model routing service designed to engage with the growing need for AI inference management, which complements its existing product suite that features AI token usage monitoring and token spend management.
Furthermore, Ramp recently unveiled Glass, a workspace dedicated to collecting and retaining AI automations, prompts, and skills developed by its employees, enabling a repository of organizational knowledge for collective use.
Christian Jensen, a partner at Dragoneer, emphasized Ramp's evolution into an extensive financial operations platform, stating, “In just a few years, Ramp has become a much broader financial operations platform, with AI deeply embedded in how the company builds and operates. We believe Ramp is well on its way to becoming one of the defining companies of this era.”
The investment round also welcomed participation from other notable investors, including Capital International, Fidelity Management & Research Company, T. Rowe Price, D1 Capital Partners, Greenoaks, and many more. In total, Ramp has garnered approximately $5 billion in funding.
As Ramp expands its range of products, it faces increasing competition from Rippling, which also offers HR and payroll software along with corporate cards and expense management solutions, leading to a direct rivalry over similar finance team budgets.
Keith Rabois, an early investor in Ramp, expressed confidence in the company’s direction during a recent interview, stating that while competition from Rippling exists, the primary goal is to rival industry giants like Anthropic. “We’re going to compete with Anthropic... I want to be larger and more successful and more important than Anthropic,” Rabois noted, alluding to Ramp’s ambition to establish itself as the leading platform for managing token expenditures and optimizing return on investment.
