Start-up Company Ramp More Than Doubles its Valuation to $3.9B

It took only five months for corporate card start-up company Ramp to more than double its valuation to $3.9 billion.

The company is raising $300 million in a Series C round at a $3.9 billion valuation, according to CEO and co-founder Eric Glyman.

In April the New York-based start-up was was valued at just $1.6 billion.

Ramp identifies its corporate card as the card that helps you spend less. It differentiates from other competitors including American Express by allowing average clients 3.3% savings annually on their spending, according to Glyman.

Glyman has revealed that more than a third of its clients come from American Express.

The company has struck a chord with small- and medium-sized businesses by promising to save users money and time. Ramp said total cardholders have grown by five times this year and transaction volumes have tripled since April.

“The speed that this has happened is, I think, fairly unprecedented,” Glyman exclaimed in an interview. “Most businesses tend to slow down in terms of growth rate as they get larger, and we’ve actually experienced some of the fastest growth we’ve ever had despite the fact that the absolute size of the business is larger.”

“The industry has evolved to this place where people are trying to outsmart each other, spending a lot of time designing fancy points programs where they give you 5X points on this category and 2X on that,” Glyman said. Ramp’s card offers a flat 1.5% cash back rate.

More than a third of the firm’s clients are switching from American Express, the biggest U.S. issuer of small business cards, said Glyman.

Ramp was founded by Glyman and Karim Atiyeh in 2019.

Disclaimer: We have no position in any of the companies mentioned and have not been compensated for this article.