Ramp, the spend management startup that works with corporates, has raised $300 million in its Series C round of funding and has achieved a valuation of $3.9 billion which is more than double the valuation that it had in its Series B funding during April.
The funding round was led by Founders Fund and also investors in the round included Redpoint Ventures, Thrive Capital, and others. The company says that it has grown the number of its customers by 5 times and currently has a clientele of over 2000 customers. Its main aim is to help its corporate customers make big savings on their spending and purchases and it claims to save around 27% through the platform for its customers. It recently acquired a company named Buyer, which is a negotiation-as-a-service startup that also is into helping corporates save a lot of money on big-ticket purchases.
“The pace of growth in the business has been a lot faster than people expected and so that’s a big part of what’s underpinning this new investment and valuation,” said CEO and Co-Founder Eric Glyman. “Even in August, we’re experiencing what is shaping up to be the fastest percentage growth all year, if not ever.”
The partnership between the 2 teams is expected to help corporates drive down their costs not only by saving on spending but also with purchases, acquisitions, and other ways as well. While most of the other startups generally drive up prices through their services, Ramp would be looking to help the customers in deals and negotiations so that it can drive the prices down and help the corporate clients make a lot of savings in the long run.
The company has been performing strongly during the course of this year as the businesses have been hit hard during the pandemic period and to stay afloat, one of the best ways for any business is to ensure that they save on their spending as much as possible. That is why we are seeing companies like Ramp making hay and can bring in a lot of clients on board during this period as the burden of cutting on the spending and saving costs would be transferred to a third party company like Ramp and the businesses can then focus on what they do best.