New York – Ramp, a financial technology startup specializing in AI-driven corporate finance automation, has successfully raised $500 million in a new funding round, propelling its valuation to an impressive $22.5 billion. The funding, first reported exclusively by The Wall Street Journal, underscores significant investor confidence in the company's vision for autonomous finance. This latest capital injection follows a rapid succession of valuation increases for the New York-based firm.
The Series E-2 funding round was led by Iconiq Growth, with continued participation from existing investors including Founders Fund and D1 Capital Partners. This substantial investment comes just 45 days after Ramp secured $200 million at a $16 billion valuation, highlighting the accelerating interest in its AI-powered solutions. The company's total equity funding now stands at $1.9 billion since its inception in 2019.
Ramp's core offering revolves around using artificial intelligence to automate corporate finance tasks, including expense management, corporate cards, bill payments, and procurement. The company has recently launched its first AI agents, specifically designed for controllers, to autonomously enforce expense policies, detect fraud, and streamline financial operations. These agents aim to reduce manual work, allowing finance teams to focus on strategic initiatives.
CEO Eric Glyman has articulated a vision for "autonomous finance," where AI agents handle routine financial processes, significantly enhancing efficiency and accuracy. Ramp's AI capabilities, powered by models like GPT-4, analyze vast amounts of financial data to provide insights, automate tasks, and improve productivity for over 40,000 businesses. The company reported an annualized revenue of approximately $700 million as of March, and became cash-flow positive earlier this year.
The capital from this funding round will be directed towards accelerating AI innovations and expanding Ramp's global footprint. The company aims to further develop its AI agents, with a long-term goal of achieving fully autonomous financial operations by 2028. This rapid growth and substantial funding position Ramp as a key player in the evolving landscape of AI in finance, challenging traditional methods and competitors in the corporate spend management sector.