Ramp, a Fintech that automates accounting and is designed to save users money, has raised a $115 million Series B funding round co-led by D1 Capital Partners and Stripe. The new funding values the firm at $1.6 billion. The company has achieved unicorn status in record time growing by 400% in the past six months alone. Annual transaction volume stands around $1 billion
Following the sale of their first startup Paribus to Capital One, the two founders saw an opportunity in the corporate card industry that also put the customer first. The duo identified three main problems with incumbent corporate cards, according to a blog post:
- Misaligned incentives: The “products” card companies built and optimized were complex rewards programs designed to encourage wasteful spending.
- Bloated expense management software: Businesses were forced to use legacy expense tracking software that slowed everybody down.
- Lack of spending oversight: Payments were scattered across multiple systems, so businesses lacked a single view of how employees were spending.
Ramp was founded in March of 2019 with a vision to design a “corporate card and spend management platform” that has emerged as a solid Fintech success.
The Ramp card is designed for ease of use, with simple cashback and rewards. Controls at scale and real-time intelligence that automatically identifies waste and excessive costs. While many bank cards are designed to gut the users with high fees, clunky tech, and giga-high interest rates, Ramp took a different approach. The company’s core offering is an unlimited 1.5% cashback corporate card integrated with spend management software designed to help businesses spend less.
Since its launch, Ramp says it has helped 1,000+ customers identify over $10 million in wasteful spending, eliminate expense reports, and streamline financial operations to close their books 86% faster.
Ramp now claims to be the fastest-growing startup ever to come out of New York. Winners are the companies customers. Losers, well, old banks that desperately need their high fee, low-value products.