In a funding round led by digital payments giant Stripe and D1 Capital Partners, Ramp, a fintech startup that offers corporate cards and software for managing employee expenses, raised $115 million, valuing it at $1.6 billion.
This is not the first time Stripe is funding the startup. However, the New York-based firm competes with American Express, new-age fintech startups such as Brex and older expense management software makers like Expensify and SAP Concur.
The startup makes money by taking a portion of the interchange fee that merchants have to pay to card networks like Visa for a transaction that a customer makes. It also charges a fee for access to its advanced software tools.
"The startup is looking to simplify expense management and eliminate extraneous manual processes to help its clients". Colin Kennedy, Chief Business Officer.
The company said its transaction volumes grew by about five times over the past six months. Ramp's customers include audio app Clubhouse and telehealth company Ro.
The company said it would use the fresh capital to hire more and boost its marketing efforts, partnerships and product development.