Fintech Startup Ramp Reportedly Raising $200M at $16B Valuation
Fintech company Ramp is reportedly in talks to raise $200 million in new funding, which would boost its valuation to around $16 billion.
Major Investors Backing Ramp
The funding round is expected to be led by Founders Fund, an early investor in the company. Other existing backers like Sands Capital and Khosla Ventures are also likely to participate.
Based in New York, Ramp has grown rapidly since its launch in 2019. Originally offering a corporate card, the fintech startup has expanded into areas like travel management, bill payments, and a new treasury product. As of January, Ramp had reportedly reached $700 million in annualized revenue.
Rapid Valuation Growth
This new round comes just months after Ramp completed a $150 million secondary share sale in March, which nearly doubled its valuation to $13 billion. If the $16 billion valuation is confirmed, it would represent another significant leap in a short period.
Ramp has so far raised $1.2 billion in equity and secured $700 million in debt funding. Its list of investors includes General Catalyst, Stripe, Citi, and Sequoia Capital.
Advertisement
Multiplier | The World's Leading Global Human Platform
Multiplier is a leading global employment platform that manages employment, payroll & compliance for International Teams. Multiplier makes it easy to hire, onboard, manage, and pay employees and contractors around the world. We offer end-to-end global employee management – All in one place!
Competing in a Crowded Fintech Market
Ramp operates in a competitive fintech space, going head-to-head with companies like Brex, Navan, Mercury, Rho, and Mesh Payments.
The company generates most of its revenue through interchange fees on card transactions. It also earns money from bill payment fees, SaaS subscriptions, currency exchange, and affiliate partnerships linked to its travel services.
A Strong Year for Fintech
If finalized, Ramp’s upcoming round would mark another major deal in what’s shaping up to be a rebound year for the fintech sector. Just last week, digital bank Chime went public on Nasdaq, with its stock jumping 37% on its first day of trading.