As of 8/22

Exec Summary

Fastest growing B2B fintech in the US that is aiming to be the complete CFO suite for Startups, SMBs and Enterprises. Started with Corporate Credit Card (similar to Brex with better features and higher CC limits etc essentially). Second time founders, have gathered a talent vortex in the company that is helping drive product velocity that is never seen before in the history of tech.

Baseball Stats

Founded: 2019

Employees: 410

Total Raised: $700M

Valuation: $8B

Funding

Seed (19): $5M

Pre-A (20): $7M

A1 (Feb 20): $15M

A3 (Dec 20): $30M

B (April 21): $65M + 50M debt

C (Sep 21): $350M

D (Apr 22): $200M + 550M Debt

Key Investors

Stripe, Coatue Management, Vista Equity Partners, Avenir Growth Capital, General Catalyst, Better Tomorrow Ventures, 137 Ventures, Redpoint Ventures, Thrive Capital, Spark Capital, Altimeter Capital Management, Lux Capital, Definition Capital, ICONIQ Capital, D1 Capital Partners, Declaration Partners

Company Overview

Corporate card and spend management platform (Brex challenger) - focused on helping companies reduce their spend. Offers higher credit limit, insightful saving opportunities, brilliant expense management, receipt matching (best OCR), and seamless accounting integration. Returns users 1.5% in terms of cash Credit Card rewards which is substantial savings for any business.

Product

Features

• Corp Card (merchant/category level controls, txn limits, cash back rewards) → attacks Brex, Amex
• Expense mgmt (receipt scanning/matching, approvals workflow automation, next day reimbursements, travel management also) → attacks Expensify
• Accounts Payables (invoice scanning, Pay by ACH-Card-Check, Contract negotiation as a service (Acquired Buyer to do this), approval workflow automation) → Attacks Tipalti, High Radius, Bill.com
• Reporting Dashboards (Expense dashboards, savings insights,
• Automated accounting with integrations to QBO, NetSuite, Xero, Sage Intacct (Real time sync, can set rules + automation, sync metadata)

Ramp is completely free to the users and gives them 1.5% cash back too. They make money from interchange, being on Commercial BIN they make 2.1% interchange (split very little with the issuing bank

Company Notes

• Bought ‘Buyer’ → negotiation as a service co to help negotiate on customer’s behalf
• Launched ‘Ramp for Travel’ → to help employees manage their travel spends
• Three revenue opportunities - interchange, affiliate commission (when you redirect users to new partners to reduce spend), lending (pure credit spreads)
• Known for its fastest product velocity (”Keith Rabois feels its the fastest he has seen in his 21 yrs of history”)
• Staffs up small teams (3-5 engineers) and churns products very fast
• Great talent density that is becoming a vortex (All As working there)
• Co’s spend $100Tr annually, of $1.5Tr is on cards (TAM)
• Ramp’s growth comes from 1. Its customers growing 2. Acquiring new /larger customers where the spend is high
• Secret to fast growth → 1. Hyper talented people (value slope over intercept) - 10x potential 2. Split team in to 2 types that sit separately - a) Slow moving but do it right the first time (infra team - eng, design and PMs) b) Fast moving / break things culture (3-5 eng paired with one PM and One designer pod. Attacks new markets and build new products.
• Mission is all about ‘saving customers time and money’, and they do it via building a ‘technology driven financial services company’ while starting with cards/expense management as the first pillar
• AP solution helps Ramp get access to ACH volume (90%+ B2B txns) and also has network effects as more vendors get onboarded (bill.com is hard to defeat though given their existing user base, resistance to move and inherent network effects there)

Metrics/Traction

• 7000 users (Aug 2022)
• $100M Cards TPV (Sep 2020) →