Summary List Placement
Competition is heating up in the corporate card space, an industry that has long been dominated by players like American Express, JPMorgan, and Silicon Valley Bank.
Fintechs like Brex, Divvy, and Ramp have emerged, and they’re winning over business owners. Ramp, for one, said a third of its customers switched from American Express.
VCs, too, have taken notice of the fast-growing fintech category.
On Thursday, Ramp announced a $115 million Series B that values the startup at $1.6 billion. The fundraising included participation from fellow fintech Stripe, a new investor in Ramp, as well as existing investors including D1 Capital, Founders Fund, and Coatue.
Ramp has been raising money at a rapid rate, nabbing $150 million in debt financing from Goldman Sachs in February and $30 million in an extension of its Series A in December 2020. The startup announced $25 million in initial seed and Series A funding when it launched in February 2020.
The latest funding came from inbound requests from investors, Ramp co-founder and CEO Eric Glyman told Insider.
“This wasn’t a process where we went out to go fundraise,” Glyman said. “I think that folks had heard from the companies that were using [Ramp] that this was just a really different experience than anything they were used to, and it prompted folks to reach out.”
Ramp’s latest round also comes on the heels of an impressive few fundraising years for corporate-card startups.
Brex, founded in 2017, hit unicorn status in 2018, and is currently valued at $3 billion. Divvy, another competitor in the space, was last valued at $1.6 billion in January.
Ramp, meanwhile, made its public debut in February of last year. It’s since seen massive growth, with transaction volumes up 400% in the last six months, according to the company.
A new partnership with Stripe
In nabbing Stripe as …read more