Spend management startup Ramp has raised an additional $150 million, giving it a post-money valuation of $7.65 billion, the company confirmed to TechCrunch today.
New investor Khosla Ventures and existing backer Founders Fund jointly led the funding, with participation from new backers Sequoia Capital, Greylock, and 8VC. Other existing investors Thrive Capital, General Catalyst, Sands Capital, D1 Capital, Lux Capital, Iconiq Capital, Definition Capital, and Contrast Capital also contributed capital to the latest round.
The raise is being characterized as an extension of Lamp's Series D, in which the fintech company raised $300 million at a 28% lower valuation of $5.8 billion. The latest capital injection brings the company closer to the $8.1 billion valuation it achieved in March 2022.
With this funding, Lamp has secured $1.2 billion in equity funding and $700 million in committed debt funding since its founding in 2019.
In March 2023, co-founder and CEO Eric Grimman told TechCrunch that the company's revenue will quadruple in 2022, driven by its fastest-growing bill payments segment. He said he expects the company to grow, but has not yet made a profit. The company announced annual revenue of over $100 million ahead of its third anniversary in March 2022, and annual revenue of over $300 million last summer.
The company declined to reveal the latest revenue numbers, but Greiman told TechCrunch today that Ramp's total purchase volume and revenue growth in the first quarter of this year was “more than the previous quarter compared to the same period in 2024.” “It has increased significantly and faster than before.” base. “
Notably, Keith Lavoie, who recently joined the company from Founders Fund, led the investment in new backer Khosla. Apparently, there were no hard feelings on the part of Founders Fund, which was participating in the fundraising even without Lavoie.
The relationship with Founders Fund is “very deep,” Greiman said, and the company was its first institutional investor since “the very early days.” They work with the entire team there, but Greiman noted that partners Napoleon Ta and Derian Asparoukhov are “the most involved.” (It's worth noting that Lavoie originally served as the president of Founders Fund and has also been a member of Lamp's board of directors since 2019.)
Greiman said he believes Lamp's continued focus on artificial intelligence (AI) also helped attract Khosla's interest. (Khosla is an early investor in his OpenAI).
“We were very excited because they were rightfully ahead of the curve in terms of investing in OpenAI and what was happening in the AI world,” he added.
Ramp counts more than 25,000 companies across a variety of industries as customers. Interestingly, venture-backed startups represent a “minority” of the customer base, which includes farms, stores, hospitals, and nonprofit organizations.
Griman told TechCrunch that the new funding will “triple” innovation, including the use of AI capabilities to “automate cumbersome processes, provide deeper insights into spending, enhance decision-making capabilities, and more.” ” will be used for. Last November, Ramp announced a new integration with Microsoft Copilot as part of his efforts to incorporate his AI into his products.
“I think AI investments are primarily moving away from these large-scale infrastructure models and into the application layer,” Greiman said.
Ramp also plans to use the funds for acquisitions. In January, the company announced that it had acquired AI startup Venue as it expanded its procurement services. In general, for the past few years, Ramp has been in a situation where it looks like a buyout. In August 2021, Ramp acquired Buyer. Buyer is a “negotiation-as-a-service” platform that claims to save customers money on big-ticket purchases such as annual software contracts. And last year, Ramp acquired Cohere.io (not to be confused with OpenAI competitor Cohere). Cohere.io is a startup that built an AI-powered customer support tool.
Ramp currently has approximately 730 full-time employees, up from 495 a year ago.
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