Ramp secures $150M debt line from Goldman Sachs as the corporate spend market grows

This morning Ramp, a startup that competes in the corporate spend market, announced that it has secured a $150 million debt facility with Goldman Sachs. Ramp previously raised a $30 million Series B in late December 2020, after raising a $23 million Series A earlier in the same year.

TechCrunch spoke with Ramp co-founder and CEO Eric Glyman about its new credit access. Glyman said that until it was secured, his company had previously financed customer corporate spend off its own balance sheet. That effort would have become more difficult and inefficient as Ramp secured more customers, something that its rapid-fire fundraising implies that it has.

Its larger startup category is growing, as TechCrunch has reported. Ramp, Brex, Airbase, Divvy, Teampay and others compete for the custom of companies’ spend; the startups provide credit to businesses usually on a charge-card basis, collecting interchange revenues and, in some cases, software incomes as well.

Ramp intends on using its new credit facility to boost its product work, Glyman said, noting that its new access to revolving debt will free up capital that it can invest into software.

So far Ramp’s model appears to be working. The company told TechCrunch that it saw 47% growth from November to December, a figure that measures not revenue but transaction volume. However, as Ramp monetizes off of transaction volume, we can infer that its revenue scaled rapidly during the same (Read more...)