Ramp plans to use the new funding to triple down on innovation, including enhancing its artificial intelligence (AI) capabilities to automate processes and improve decision-making. The company also plans to use the funds for acquisitions, having recently acquired AI-powered startup Venue. Ramp currently serves over 25,000 companies across various industries and has grown its full-time employees to 730, up from 495 a year ago.
Key takeaways:
- Ramp, a spend management startup, has raised another $150 million at a post-money valuation of $7.65 billion. The round was co-led by new investor Khosla Ventures and existing backer Founders Fund, with participation from Sequoia Capital, Greylock, and 8VC, among others.
- The latest funding round is an extension of Ramp’s Series D, in which the company raised $300 million at a 28% lower valuation. The new capital infusion brings the company's valuation closer to the $8.1 billion it had achieved in March 2022.
- Ramp has secured $1.2 billion in equity financing and $700 million in committed debt funding since its inception in 2019. The company's revenue grew by 4x in 2022, but it is not yet profitable.
- The new funding will be used to "triple down" on innovation, including using artificial intelligence capabilities to automate processes, provide deeper insights into spending, enhance decision-making capabilities, and more. The company will also use the funds towards acquisitions.