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Ramp raised the capital in two tranches, the first of which, a $65m investment led by D1 Capital Partners, valued the startup at $1.1b. A $50m investment led by Stripe, the online payments giant, pushed its valuation to $1.6b. And what to make of Stripe on the Ramp cap table? Stripe itself has a corporate card and spend management product, and was picky when one of its backers put capital into a company that it construed as a rival. According to Glyman, the decision to take investment from Stripe came down to whether his team wanted to work with the larger company — they did — and whether they trusted the payments giant. He decided to. Stripe did not receive a board seat as part of its investment.
TechCrunch reckons that while growth remains strong at Ramp and its fellow zero-cost corporate spend providers, they’ll stick with their current model. In time, however, we expect surviving players to ask their customers to pony up for at least part of the software stack that they currently receive for free. The possibility is accentuated by the fact that Glyman told TechCrunch that his customers are removing existing software like Expensify in favor of Ramp’s own code in some instances. That means that those companies have spend budgeted that Ramp and others are not accreting to their own books.
https://techcrunch.com/2021/04/08/spend-management-startup-ramp-confirms-115m-raise-1-6b-valuation/
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