April 08, 2021 at 08:08PM

Business card and expense management upstart Ramp announced on Thursday (April 8) that it has raised $115 million in new funding and attained a valuation of $1.6 billion. According to a company news release, this makes Ramp the fastest-growing New York startup and the first to surpass $1 billion in valuation in less than two years after incorporation.

The new funding round — led by D1 Capital Partners and Stripe, along with Goldman Sachs, Founders Fund, Coatue Management, Thrive Capital, Redpoint Ventures, Box Group, Neo and Contrary Capital — brings the total venture and debt financing Ramp has raised to $320 million.

Ramp says the new funds will be used to support growth and product development, such as the addition of new payment capabilities like sophisticated card controls, accounting automation and automated savings.

Based in New York, Ramp generates revenue from taking a portion of interchange fees, along with a monthly charge from clients using higher-end software functionalities. According to the company, its transaction volume has grown by roughly 400 percent in the past six months, and is approaching $1 billion in transaction volume. Ramp says a third of its customers came from American Express, and more than 90 adopted its service as a replacement for platforms like Concur or Expensify.

“Whether at fast-scaling unicorns like Ro, Better, ClickUp, Applied Intuition and more, or at more traditional businesses seeking higher financial efficiency, Ramp has quickly become the spend management platform of choice,” the company said.

“Our transition to Ramp was memorable because it felt like upgrading from a flip phone to an iPhone. Ramp brings corporate cards into the future,” said Aron Susman, CFO of Ro and a Ramp client. “Within minutes of signing up, we were able to issue cards to employees and take full control of our spending.”

For more on this topic, read PYMNTS‘ report from January on virtual cards and the evolution of B2B payments.

Expense Management Startup Ramp Reaches Record-Setting $1.6B Valuation …

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