By Niket Nishant
(Reuters) – Ramp, a fintech startup that offers corporate cards and software for managing employee expenses, has more than doubled its valuation to $8.1 billion after a funding round led by billionaire Peter Thiel’s Founders Fund.
The New York-based company, whose competitors include American Express, said on Monday it sold $200 million worth of equity and raised $550 million in debt.
Existing investors that took part in the round include D1 Capital Partners, Thrive Capital, Redpoint Ventures, Coatue Management and Stripe. General Catalyst and Avenir Growth Capital were among the new investors.
Ramp’s platform is used by over 5,000 businesses and its revenue grew nearly tenfold in 2021. The three-year-old startup makes money by taking a share of the fees merchants pay on every transaction through its card.
Seeking to capitalize on the rebound in business travel from pandemic lows, the fintech firm recently launched the Ramp for Travel software in partnership with companies like Lyft Inc and WeWork Inc that promises better travel management for employees.
“The largest single sector of spending in a quarter is travel and entertainment. As people are traveling again, (this) is a natural place for us to grow revenues in,” co-founder and Chief Executive Officer Eric Glyman said.
Ramp was valued at $3.9 billion in August after its previous fundraise, which was also led by Founders Fund.
The startup plans to double its workforce of 275 this year and will open a new office in Miami, it said.
(Reporting by Niket Nishant in Bengaluru; Editing by Aditya Soni)
