2022 has been a tumultuous year for many fintech startups. But for Ramp, it was a year of opportunity.
The company shared today that it saw revenue grow 4x last year, supported by what co-founder and CEO Eric Glyman describes as a desire from businesses of all sizes and stages looking to save money by better managing their spend.
“During one of the fastest rate hikes we’ve seen in US history and with the cost of capital rising, companies realized they needed to make the most of every dollar,” he said.
Last July, Disaster revealed that it had crossed $100 million in annual revenue before his third birthday in March of that year. Glyman declined to share updated revenue numbers this week, noting only that the company continued to grow — led by the fastest-growing bill-paying segment.
Notably, the executive also claimed that the startup has – it has secured $670 million in equity financing and $700 million in committed debt financing since its inception in 2019 – still has “the vast majority of [equity] funds” that it “ever received” are still on its balance sheet.
It has remained intentionally lean, currently employs 464 staff and has not resulted in any layoffs.
Disaster is not yet profitable because it is focused on growth while also wanting to be efficient, Glyman said.
“We’ve increased our earnings contribution and our bottom line even faster,” he told australiabusinessblog.com.
Over time, Ramp said it has helped its clients reduce their costs by more than $400 million. It counts more than 15,000 companies as customers with “well into the hundreds of thousands of users” and onboards about 1,000 users per day.
Notably, like some of its competitors in the space, such as Brex and Navan (formerly TripActions), Ramp says it’s partnering with increasingly large companies. So while the majority of its customers are mid-market companies, it attracts more late-stage private companies like Attentive, as well as publicly traded companies like EventBrite. Other clients include Betterment, Waymo, Share, Webflow, Barry’s Boot Camp, Caraway, TaskRabbit, and Quora.
Glyman says Ramp supports a “wide variety” of businesses, including tequila brand 818, airlines, farms, manufacturers, and even steel mills. He also believes that the boost in business was partly due to the actions of his competitors. For example, Brex infamously announced last summer that it would stop working with small businesses and unfunded startups.
“We think our clients judge companies and their character and what they’ve done not just at one point in time, but what they’ve done over the years,” Glyman said. “I think when other players in the market are not serving companies or changing their behavior quickly, companies will often ask their peers who they are recommending.”
Disaster, he added, is not currently looking for more capital.
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