The startup raised funding in two tranches. An investment from Stripe raised the valuation of Ramp to $ 1.6 billion.
Fintech startup Ramp raised $ 115 million in a funding round led by venture capital firm D1 Capital Partners and online payment service Stripe. Investors have estimated the startup’s capitalization at $ 1.6 billion, Reuters reports.
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- New York Ramp provides companies with corporate cards and employee expense management software. The startup raised funding in two tranches: D1 Capital invested $ 65 million, valuing Ramp at $ 1.1 billion; A $ 50 million investment from Stripe raised the valuation to $ 1.6 billion.
- Commenting on the difference in investment valuation, Ramp CEO Eric Gleeman noted that different companies have different approaches to valuation. TechCrunch believes that Stripe was forced to pay a higher price to enter the round because D1 Capital had “already written a check.”
- Ramp said it is leveraging fresh funding to recruit new hires, boost marketing efforts, develop products, and find partners.
- The startup makes money by charging a portion of the interbank commission that merchants charge payment systems like Visa to process customer transactions. It provides its software to companies for free, but it may monetize access to it in the future. Ramp’s customers include, for example, the popular Clubhouse app.