Ramp, a fintech startup launched by Eric Glyman in February 2020, successfully navigated the challenges of the COVID-19 pandemic by focusing on cost-saving measures for businesses, leading to a valuation of $7.65 billion by April 2023. The company has embraced cloud technology and AI to enhance its corporate credit card and expense management services, positioning itself as a competitive player in the fintech space with innovative features and a strong growth trajectory.
In February 2020, Eric Glyman launched Ramp, a fintech startup focused on corporate credit cards and expense management. Shortly after its debut, the company faced unexpected challenges when half of its New York City employees fell ill, coinciding with the onset of the COVID-19 pandemic. As global lockdowns halted economic activity, Ramp had to navigate a market where businesses were cutting spending drastically. Glyman described this period as an existential crisis, noting that it was unprecedented for so many businesses to be forced to shut down, leading to zero revenues.
Despite these challenges, Ramp found its niche by emphasizing cost-saving measures rather than encouraging increased spending. This approach resonated with businesses during the pandemic, as many were looking to reduce expenses amid uncertainty. Glyman believes that this focus on corporate thrift became a core tenet of Ramp’s value proposition, helping the company to thrive in a difficult environment. The startup’s North Star metric is centered around how much it saves customers annually, with an average reduction of 5% in spending.
As of April 2023, Ramp was valued at $7.65 billion and was recognized as the fastest-growing corporate card provider in the U.S. The company reported processing $35 billion in total purchase volume, a significant increase from $10 billion in May 2023. Additionally, Ramp’s annualized gross revenue was projected to reach $600 million in 2024, nearly doubling from the previous year. This growth trajectory highlights Ramp’s successful adaptation to the changing financial landscape.
Ramp has also embraced cloud technology and artificial intelligence to automate various aspects of finance management for corporate clients. This strategy has led to the company’s inclusion in the Forbes Cloud 100 list, where it ranked 37th, showcasing its expansion beyond traditional credit card services. Read the full story on Forbes: This Fintech Unicorn Wants AI To Manage Your Company's Finances. By integrating AI features into its offerings, Ramp aims to provide a comprehensive solution for spend management, combining physical and digital credit cards with expense management and HR capabilities.
The company differentiates itself from traditional credit card providers by offering innovative features, such as issuing special purpose cards with specific spending limits for individual employees. While many of Ramp’s software features are free, it charges for premium services, such as multi-currency support. Ultimately, Ramp’s core business model still relies on interchange fees from customer transactions, positioning it as a competitive player in the fintech space as it continues to grow and evolve.