Fintech startup Ramp has achieved a significant milestone, reaching $700 million in annualized revenue as of January this year, according to a source with knowledge of the company’s internal operations.

Notably, the company had previously surpassed $100 million in annualized revenue before its third birthday in March 2022 and had reached $300 million by August 2023. This represents a substantial increase, with the company effectively more than doubling its revenue in less than 18 months.

While Ramp has not officially disclosed its revenue numbers, CEO and co-founder Eric Glyman shared with TechCrunch that the company now accounts for “between 1-2% of the U.S. card market.” Although this is an impressive achievement for such a young company, Glyman also noted that it indicates “a nice way of saying we have a lot of room to grow.”

Ramp has chosen not to prioritize profitability at this time, instead reinvesting its funds. According to Glyman, “when we want profits, we could do so very quickly.” He also highlighted that over half of every dollar spent on payroll goes towards research and development, which is allocated to product development and the teams that build them. This approach differs from most software companies.

With a substantial amount of capital at its disposal, Ramp is well-equipped to operate at a loss. The company raised an additional $150 million in a Series D extension co-led by Khosla Ventures and Founders Fund last April.

Interestingly, Glyman mentioned that AI is helping the company reduce its cash burn to less than $2 million per month.

“Every team at Ramp is utilizing AI to enhance their work and scale their output, from sales to marketing, product, and engineering,” Glyman explained.

For instance, AI is assisting sales development representatives in booking more meetings. The company has developed data signals and automations that pre-qualify leads, making it more efficient for representatives when they make phone calls.

Another example is Ramp’s recent production of a Super Bowl ad, which was completed in just 10 days from concept to completion.

Glyman told TechCrunch that AI tools like Midjourney enabled the company to test hundreds of different iterations in just three days before filming. He emphasized that this level of speed would have been impossible without AI.

On Monday, Ramp announced that it has nearly doubled its valuation to $13 billion after a $150 million secondary share sale. The transaction involved new and existing investors, including VC Stripes, GIC, Avenir Growth, Thrive Capital, Khosla Ventures, General Catalyst, Lux Capital, 137 Ventures, and Definition Capital, who purchased shares from employees and early investors.

This significant increase in valuation is a notable development for Ramp, which was valued at $7.65 billion last April when it raised $150 million in a Series D extension. At that time, the company had secured $1.2 billion in equity financing and $700 million in committed debt funding since its inception in 2019.

By the end of 2024, Ramp had surpassed the 1,000-employee mark, according to Glyman, representing a significant increase from the 730 employees it had at the time of its raise last April.

Ramp generates revenue primarily from interchange fees charged for every swipe with a Ramp card, as well as transaction fees on bill payments. The company also earns SaaS revenue from customers who upgrade to its Plus offering, and from foreign exchange on international money movement, affiliate fees when flights or hotels are booked through its travel product, among other sources.

With the introduction of its Treasury product, Ramp will also earn a spread from its bank partners on aggregate balances across all funds held in a customer’s business account.

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