Corporate charge card start-up LiveRamp Holdings Inc. (NYSE:RAMP) has more than doubled its valuation since its previous round just five months ago amid torrid revenue growth and strong demand for fintech investments.
Ramp is raising $300 million in a Series C round at a $3.9-billion valuation, according to CEO and co-founder Eric Glyman. The New York-based firm last raised money in April at a $1.6 billion valuation.
The company, which competes with legacy players including American Express and disruptors such as Brex, has struck a chord with small- and medium-sized businesses by promising to save users money and time.
That’s led to strong growth since its February 2020 launch: Ramp said total cardholders have surged by five times this year and transaction volumes have tripled since April.
Fintech firms around the world garnered a record $98 billion in venture capital, mergers and private equity investments in the first half of 2021, according to KPMG. Fintech giants including Robinhood (NASDAQ:HOOD) and Coinbase are now publicly-traded companies, while retail banking start-ups like Chime have swelled in valuation.
Ramp, founded by Glyman and Karim Atiyeh in 2019, is among a new breed of business lenders taking on a sector that hasn’t seen much change in decades. Like Brex, another young company with an eye-popping valuation (it raised at a $7.4 billion valuation in April), Ramp offers cash-back charge cards and a suite of software tools for business owners.
RAMP shares added a dime to $45.03.