Ramp Achieves $13 Billion Valuation in Recent Share Sale

Ramp, the corporate payments startup, has recently seen its valuation increase to $13 billion, signaling a recovery in the fintech sector which had previously experienced a downturn due to economic fluctuations and reduced spending. The New York-based company, which offers services in expense management, corporate cards, and accounting automation, achieved this new valuation through a share sale involving significant investment from entities such as Singapore’s sovereign wealth fund GIC, U.S. private equity group Stripes, and venture capitalists including Thrive, Khosla Ventures, and General Catalyst.

Previously valued at $7.65 billion in the prior year, Ramp’s growth has been supported by an uptick in card transactions and bill payments. The integration of AI technology has been central to its operations, enhancing various aspects of its business from expense management to financial oversight.

The broader fintech industry has faced challenges from varying interest rates and consumer spending patterns, impacting companies across the sector. However, firms like Ramp that expanded their market share before the downturn have continued to perform well as conditions improve. Ramp’s reported annualized revenue has increased to $700 million, up from $300 million, and it now processes $55 billion in payments annually, a significant increase from the previous year.

Ramp is positioning itself as a comprehensive platform for corporate clients, extending beyond payments to include procurement and travel booking services. This strategic expansion is similar to approaches taken by other fintech leaders such as Stripe, which also recently increased its valuation.

The recent share sale by Ramp enabled early employees and investors to liquidate some of their holdings for personal financial purposes. According to CEO Eric Glyman, the company does not have immediate plans for a public offering, indicating a focus on further internal growth and service expansion while remaining privately held.