Ramp, a fintech company providing corporate cards and expense management software, reached a valuation of $13 billion in a tender offer round that allowed some employees and investors to sell their shares, reflecting renewed interest from investors in high-growth startups.
The five-year-old company achieved this new valuation by selling $150 million worth of secondary shares to investors such as Singapore’s wealth fund GIC, Thrive Capital, Khosla Ventures, and General Catalyst, according to a statement released by Ramp on Monday. This marks a significant increase from its $7.65 billion valuation in a funding round last April.
The company has not disclosed its revenue, but a source familiar with its financials revealed that its annualized revenue has reached $700 million. Ramp follows in the footsteps of other prominent startups, such as Databricks and Stripe, in permitting employees to sell their shares, a strategy that may potentially delay their plans for an IPO.
“We want to find a way to partner but didn’t have a primary (funding) need. Secondary was a great fit, where it could allow us to deepen partnerships with investors that we were really dying to work with,” said Eric Glyman, Ramp’s co-founder and chief executive, who added the company is on a path to reach cash-flow positive.
Last week, Stripe revealed a tender offer for its employees and shareholders, valuing the company at $91.5 billion—nearly 41% higher than its valuation from the previous year. This move could potentially push back the fintech firm’s plans to go public. Ramp, which serves more than 30,000 customers ranging from family farms to space startups, facilitates over $55 billion in annualized payment volume through card transactions and bill payments, up from $10 billion in January 2023, according to the company.
