Corporate cards typically provide an employee a way to purchase work-related items, but Ramp is redesigning how that works in a way that ends up saving a company money.
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“We’ve talked to people about the cost of rewards, and the more customers we talked to, the more we learned that instead of rewards, they wanted money in the bank account at the end of the month,” Ramp co-founder and CEO Eric Glyman told Crunchbase News. “We are able to save companies an average of 4 percent on top of the cash back.”
The team behind Ramp knows a little something about saving money: It built and scaled money-saving platform Paribus before selling it to Capital One in 2016. While at Capital One, the group enabled automated savings on online purchases, putting more than $100 million back into consumers’ pockets, Glyman said.
Now Ramp, headquartered in New York, raised $30 million in Series A3 financing from D1 Capital and Coatue Management, with participation from existing investors including Founders Fund.
The new funding gives Ramp just over $55 million in total funding since the company was founded in 2019, which includes a $25 million venture round announced in February and led by Founders Fund, according to Crunchbase data.
This latest round will go toward educating companies on how they think about their finances and spending, Glyman said. The platform offers higher card limits, insightful saving opportunities, automated expense management, receipt matching, and seamless accounting integration.
The raise will also be used to fund the hiring of more people–two-thirds of the company is software engineers, design and product folks. There are about 65 employees, and the company has been increasing its headcount every six months. Glyman is planning to continue that growth.
Glyman estimates the company has grown 15 times since the start of the global pandemic and expects another 50 percent growth for December. Ramp reached $100 million in transaction volume in the past few months, and Glyman said one out of every four dollars flowing through the company’s platform occurred within the last 30 days.
“We’ve been growing quite quickly, but did not go out and raise,” he said. “In fact, we still had funds from a seed we hadn’t touched. We are excited to get people involved now.”
Glyman sees American Express as one of Ramp’s competitors, but also companies such as expense management software companies Expensify and Concur.
Where Ramp differentiates itself is by enabling users, after charging something to the card, to text back a receipt. It also manages reimbursements and alerts people when they are approaching their credit limits.
“We are excited to continue to streamline the experience, from allocating cards to automating,” Glyman said. “We plan to leverage insights and show where there are duplicate subscriptions and when companies are getting charged more for services.”
Illustration: Li-Anne Dias
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