Ramp raises $1.85 billion at a $60 billion valuation, four months after its last round

Ramp, the New York-based corporate card and expense software company, said on Thursday, Oct. 15, that it raised $1.85 billion in a round led by Dragoneer Investment Group that values it at $60 billion, up from $44 billion when it last raised money in June.

The round

Dragoneer Investment Group led the $1.85 billion round, with Thrive Capital, Founders Fund, Sands Capital and Avenir Growth as co-leads. Ramp named about two dozen other participants, including Fidelity Management & Research Company, T. Rowe Price, GIC, Coatue, D.E. Shaw, Khosla Ventures and Lightspeed Venture Partners.

It is a primary round, so the money goes to Ramp itself rather than to existing shareholders selling stock. Ramp said it has now raised about $5 billion in equity in total. After its previous round, it put that figure at more than $3 billion.

The new price is about 36% above the $44 billion valuation Ramp announced on June 4, when it raised $750 million in a round led by ICONIQ, GIC and Ontario Teachers' Pension Plan.

What Ramp says about its business

Ramp said that as of Oct. 1 it was generating more than $2 billion in annualized revenue, a measure that counts interchange fees from card spending along with subscription, interest and other revenue, excluding incentives to customers. It said its cash flow was positive. In June, the company said only that annualized revenue was above $1 billion, though reports at the time put it above $1.5 billion.

At $60 billion, investors are valuing Ramp at about 30 times its annualized revenue, based on the company's own figures.

More than 85,000 companies now use Ramp, up from more than 70,000 in June. Together they put more than $275 billion a year of purchases through it, 175% more than a year earlier and up from $200 billion in June. That purchase-volume figure leaves out bank transfers and payments Ramp does not earn money on. The number of customers generating more than $100,000 in revenue for Ramp rose 113% from a year earlier, the company said, and its revenue is growing 25% faster than it was at the same point last year. Ramp did not disclose the growth rate itself.

Ramp is privately held, and all of these figures come from the company.

A bet on managing AI costs

Ramp began with corporate cards and expense software and has since added payments, procurement, vendor management and accounting tools. Its latest pitch centers on artificial intelligence. The announcement says Ramp wants businesses to get more value from "every dollar, hour and token," a reference to the units AI providers use to bill for model usage.

Its recent products include token spend management, which tracks AI spending across providers, teams, models, users and API keys; Router.com, which sends each AI request to a model based on cost and performance and which Ramp says can cut inference costs by up to 40%; and Glass, a shared AI workspace. Ramp entered the model-routing business in August and has also offered a corporate card designed for AI agents to use.

"AI opens up much more of the work it takes to run a company," co-founder and co-CEO Eric Glyman said in the announcement. "Our opportunity is to get that work done at less cost."

The competition

The wider product line has put Ramp up against Rippling, the HR and payroll software company that has moved into corporate cards, expense management and bill payments. Brex, another corporate card and spend-management rival, became part of Capital One when the bank completed its acquisition in April.

Keith Rabois, an early Ramp investor whose firms Founders Fund and Khosla Ventures both joined the new round, has framed the target more broadly. "Ramp is not worried about Rippling," he told TechCrunch in September. He said Ramp aims to become the main way companies manage and measure their AI token spending, which could bring it into competition with Anthropic.

What comes next

Ramp did not say how it plans to spend the new money, beyond its focus on AI tools for finance teams. The next test is whether the company can keep revenue and purchase volume growing at this pace as it moves into areas where bigger software and AI companies also compete.