In the information age, the B2B eCommerce industry is booming. Chief Executive Officer of Ramp, Eric Glyman, capitalized on this need for corporations to easily manage and track their corporate spending. Ramp accomplishes this by offering a combination of corporate cards and tracking software to its customers to allow them to better track their spending accounts.
Ramp is able to differentiate itself from some of its competitors by offering its software for free, its revenue instead coming from taking a small portion of customer spend via interchange incomes. While the company plans to stand by this model for now, it is possible that this will change as more customers opt for Ramp’s services, leaving the money they were paying for other services on the table.
Ramp’s card usage analytics that reveal excess and unnecessary transactions are also a key differentiator, leading many customers to adopt Ramp’s offerings as their holistic spend management platform.
“Like Square, PayPal, and Stripe, Ramp is rapidly emerging as a generational fintech company. Though it launched publicly just one year ago, Ramp is already viewed as the obvious choice for efficient spend management at the fastest-scaling, highest-performing startups,” said Keith Rabois, Partner at Founders Fund.
According to Glyman, Ramp’s growth is showing no signs of slowing down. He said the company is nearing a transaction run rate of $1 billion and its spend run rate increased by approximately 400% over the last 6 months. Now, the company has announced a $115 million raise across two investments, bringing its total valuation up to $1.6 billion and allowing it to join the ranks of other unicorns in the space. The first investment was led by D1 Capital Partners, and the second by industry giant Stripe.
The company plans to use the capital raise to focus on product development, including new features in the realms of card controls, accounting automation, and automated spending. It also plans to bolster its business partnerships and marketing strategy. With some major players backing the company’s mission, it’s no wonder that Ramp is making waves in this industry.