Report: Ramp Nears New Infusion That Values Firm At $1.6 Billion

Report: Ramp Nears New Infusion That Values Firm At $1.6 Billion

Business card and expense management upstart Ramp is reportedly near wrapping up two investment rounds that will provide the firm with a $1.6 billion valuation, The Information reported, citing three unnamed sources.

The first $65 million round was headed up by D1 Capital Partners and saw the involvement of Stripe and current investors Goldman Sachs and Coatue Management, providing the firm with a $1.1 billion post-money valuation. Now, Stripe is heading up a further $50 million investment in the company at a $1.6 billion post-money valuation, two unnamed sources said in the report.

Ramp’s transaction volume crossed the $100 million mark in 2020, the report stated. Digital mattress merchant Eight Sleep and online health firm Ro are among the upstart’s clients.

As of now, Ramp depends on Marqeta to issue its business card, yet it could start harnessing Stripe’s network in lieu, according to two unnamed sources in the report.

Ramp, which is headquartered in New York, generates revenue by taking a portion of interchange fees. Moreover, Ramp takes a monthly charge from clients for use of higher-end software functionalities.

The company’s rivals in providing business cards and expense software to companies include Divvy and Brex.

In February, Brex said it filed to open an industrial bank in Utah. Industrial banks are different from other types of banks in the United States as they don’t have to be owned by bank holdings companies. If given the green light, Brex’s bank would be headquartered in Draper, Utah, and would be known as Brex Bank.

“As proposed, Brex Bank will expand upon Brex’s existing suite of financial products and business software, offering credit solutions and FDIC-insured deposit products to [small- to medium-sized businesses (SMBs)],” a press release from Brex stated at the time.

Brex’s software brings together payments processing with financial management capabilities. SMBs have composed a central market for Brex since the firm’s beginnings.