Khosla and Founders Fund Co-Lead $150 Million Boost for Ramp, Valuing Company at $7.65B

Spend management startup Ramp has announced a successful funding round of $150 million, bringing its total post-money valuation to $7.65 billion. TechCrunch has confirmed that the raise was co-led by new investor Khosla Ventures and existing backer Founders Fund.

The round also had participation from other new investors including Sequoia Capital, Greylock, and 8VC, as well as returning backers Thrive Capital, General Catalyst, Sands Capital, D1 Capital, Lux Capital, Iconiq Capital, Definition Capital, and Contrary Capital.

This latest raise is an extension of Ramp’s Series D, which took place last year and raised $300 million at a 28% lower valuation of $5.8 billion. The new funding brings Ramp closer to its previous valuation of $8.1 billion achieved in 2022.

Since its founding in 2019, Ramp has raised a total of $1.2 billion in equity financing and $700 million in committed debt funding.

Ramp’s co-founder and CEO Eric Glyman has revealed that the company’s revenue grew by 4x in 2022, with its bill pay segment being the fastest-growing. However, the company is not yet profitable. It reached $100 million in annualized revenue before its third birthday in 2022 and surpassed $300 million in annualized revenue last summer.

While Ramp has not disclosed its updated revenue figures, Glyman said that in the first quarter of this year, the company’s total purchase volume and revenue growth increased at a faster rate compared to the same period in 2024, on a much larger base.

An interesting development in this funding round is that Keith Rabois, who recently joined Khosla Ventures from Founders Fund, led the investment for Khosla. This move did not impact Founders Fund’s participation in the raise.

Glyman acknowledges that Ramp’s relationship with Founders Fund runs deep, as they were the company’s first institutional investor in its “very early days.” Glyman also notes that partners Napoleon Ta and Delian Asparouhov have been the most involved since Rabois’ departure. (Rabois originally represented Founders Fund and has sat on Ramp’s board since 2019.)

The emphasis on artificial intelligence (AI) in Ramp’s operations may have played a role in attracting Khosla’s interest, given their early investments in OpenAI.

Over 25,000 companies across various industries are Ramp’s customers, with a particular focus on small businesses, farms, shops, hospitals, and non-profits rather than venture-backed startups.

Glyman says the new funding will be used to “triple down” on innovation and utilize AI capabilities to streamline processes, provide deeper insights into spending, and enhance decision-making capabilities. Last year, Ramp announced a new integration with Microsoft Copilot as part of its AI efforts.

This funding will also fuel Ramp’s acquisition strategy. In January, the company acquired Venue, an AI-powered startup that specializes in procurement. And in recent years, Ramp has made other notable acquisitions, including Buyer, a “negotiation-as-a-service” platform, and Cohere.io, an AI-powered customer support tool.

Ramp currently has 730 full-time employees, a significant increase from 495 a year ago.

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