Corporate credit card company Ramp, which provides both physical and virtual cards, is raising $300 million in a Series C funding round, according to a Tuesday (Aug. 24) CNBC report.
The latest funding round will push the New York-based company’s value to a whopping $3.9 billion, according to the report.
Ramp’s inclusive platform offers the ability to issue physical and virtual corporate credit cards, automate expense reports and digitize, approve and pay invoices, according to the company’s website. The suite also features accounting automation, real-time reporting of expenses and the ability to integrate with various software programs, including Google, Slack, and Intuit Quickbooks among others.
The platform was founded with the mission of saving its customers money, CEO and Co-founder Eric Glyman told PYMNTS last year. Wasted spending is particularly an issue for small and medium-sized businesses (SMBs) with 40 to 250 employees, he said. In some instances, businesses unknowingly pay for duplicate software subscriptions or are lured in by misleading pricing models with hidden costs. Expense management software is another area where Glyman said companies spend unnecessarily.
To combat overspending, Ramp offers its expense platform at no cost, ultimately reducing expenses for its customers via software and data-capture costs. The software also features automated product price comparison to make sure employees select the most cost-effective option, as well as cash-back rewards.
Similar to the price-matching software that Ramp incorporates, its predecessor, Paribus, also made price-matching part of its formula for success. Glyman founded Paribus, which was acquired by Capital One in 2016. Paribus, which launched in 2015, helps online shoppers obtain automatic refunds when prices decrease on items they bought previously.
In terms of corporate card issuance, Ramp competes with traditional credit card issuers, as well as virtual card companies, including Brex. According to CNBC, Ramp has seen total card customers increase five-fold in 2021, while transaction volumes increased three-fold since April.
Last week, Brex announced the acquisition of Israel-based commerce API company Weav to broaden its global offerings.