Fintech company Ramp's annualized revenue surged to 2 billion, and the new round of financing was valued at 60 billion US dollars

The Zhitong Finance App learned that the annualized revenue of fintech company Ramp has soared to $2 billion. The company plans to announce this milestone on Thursday, which has helped it attract new investor capital.

The corporate spending management startup has raised $1.85 billion in a new round of funding, with a valuation of $60 billion, and Ramp confirmed the news. This round of financing was led by Dragoneer Investment Group, with Thrive Capital, Founders Fund, Sands Capital, and Avenir as co-lead investors.

The funding was only about four months after Ramp's last round of funding, when the company raised $750 million and valued at $44 billion.

Ramp was founded in 2019 and currently says it has partnered with more than 85,000 companies, up from 70,000 in early June. The company offers a range of products to help business managers manage bills, collect revenue, and identify fraud. According to the company, its revenue growth is also accelerating, up 25% from the same period last year.

The company's annualized revenue — based on an annual forecast of sales over a shorter period — has risen from $1.5 billion in June.

Co-CEO and co-founder Eric Greeman said that corporate spending on AI has surged in the past year, and Ramp has captured this trend with its latest products. “Just as companies have systems to manage payroll and supplier expenses, I think organizations also need this kind of AI expense management,” he said.

Since the last round of funding, Ramp has released new AI-focused tools, including a product to help companies route tasks to lower-cost models (where appropriate), and a platform for finance and engineering teams to view and manage the company's AI spend.

With the new capital, RAMP plans to build more products with advanced AI capabilities, and Gleemann said this requires more capital investment. The company also plans to continue hiring — Ramp currently has 1,900 employees worldwide, up from 1,700 in June, after the company launched products in the UK and Canada in recent months. The startup completed two acquisitions earlier this year, and Gliemann said Ramp is likely to seek more acquisitions.

Although Grimman did not say when Ramp might go public, he said the new capital brought the company closer to its IPO target. He pointed out some of the new investors in the capital structure table, including Dragoneer, Fidelity Management and Research, and Capital International. These are all typical “cross” investors, which usually aim to invest a few years before the company goes public and hold shares until it debuts in the open market.