Fintech startup Ramp has crossed $700 million in annualized revenue as of January of this year, according to a source familiar with the company’s internal operations.
The company had crossed $100 million in annualized revenue before its third birthday in March 2022, passed $300 million by August 2023, and now effectively more than doubled that in less than 18 months.
While Ramp has not formally released its revenue numbers, CEO and co-founder Eric Glyman told TechCrunch that Ramp now accounts for “between 1-2% of the U.S. card market,” impressive for such a young company but also “a nice way of saying we have a lot of room to grow,” Glyman added.
The company, however, is not yet profitable by choice because it is reinvesting its money. When it wants profits, “we could do so very quickly,” Glyman said. “Over half of every dollar we spend on payroll goes into R&D. Which means over half goes into our products and the people who build them. That’s very different from most software companies.”
Ramp has plenty of capital on hand to run in the red from operations. It raised a fresh $150 million in a Series D extension co-led by Khosla Ventures and Founders Fund last April.
Interestingly, Glyman also says that AI is helping the company reduce its cash burn to less than $2 million a month.
“Every team at Ramp is using AI to augment the way they work and scale their output, from sales, to marketing, to product and engineering,” Glyman says.
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For example, he said AI is helping sales development representatives to book more meetings. The company has built data signals and automations so that by the time the representatives do get on the phone, “leads are pre-qualified,” he described.
Another example lies in Ramp’s recently producing a Super Bowl ad in 10 days from concept to completion.
“AI tools like Midjourney allowed us to test hundreds of different iterations with just 3 days before filming,” Glyman told TechCrunch. “That kind of speed would have been impossible before.”
On Monday, Ramp announced that it has nearly doubled its valuation to $13 billion after a $150 million secondary share sale. New and existing backers including VC Stripes, GIC, Avenir Growth, Thrive Capital, Khosla Ventures, General Catalyst, Lux Capital, 137 Ventures and Definition Capital bought the secondaries from employees and early investors.
It’s a massive bump in valuation for Ramp, which was valued at $7.65 billion last April when it raised the $150 million series D extension. With that raise, Ramp had secured $1.2 billion in equity financing and $700 million in committed debt funding since its 2019 inception.
The startup crossed the 1,000 employee mark by the end of 2024, Glyman said — up from 730 at the time of its raise last April.
Ramp primarily makes money from interchange fees charged for every swipe with a Ramp card as well as from transaction fees on bill payments. It also earns SaaS revenue from customers who upgrade to its Plus offering, through foreign exchange from international money movement, affiliate fees when flights or hotels are booked through its travel product, among other things.
With the addition of its Treasury product, Ramp will also earn a spread from its bank partners on aggregate balances across all funds held in a customer’s business account.
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