Ramp, a financial technology company known for its innovative solutions, has made a significant leap into treasury services with its latest product offering. The company is extremely proud of their more than 30,000 customers. It is growing rapidly, having successfully used cards and bill payments to enable more than $50 billion in purchases. Ramp just made an incredibly smart move by partnering with First Internet Bank of Indiana to provide ramp cash deposit accounts. They recently partnered with Apex to develop the investment side of their new offering. Unlike typical fintech offerings, this product complements your current bank accounts rather than competing with them. With this launch, Ramp is jumping into the deep end of the financial competition.
By the end of 2024, Ramp backed an incredible accomplishment. The firm has more than 1,000 employees, up from 730 at the time of its $250 million funding round last April. The favored Texas company recently raised a whopping $150 million in their latest funding round. Khosla Ventures and Founders Fund led the investment. That brings the post-money valuation up to $7.65 billion. Although Ramp is not a bank per se, Ramp is working with banking partners to provide access to its new treasury product. This strategic alliance allows Ramp to provide business account holders with options to earn money, as opposed to simply saving it.
As many of you know, Ramp has been on an incredible growth trajectory. By March 2022, right before its third birthday, it topped $100 million in annualized revenue. By the middle of summer 2023, the company already broke the threshold of $300 million in annualized revenue. These figures are a testament to the company’s phenomenal growth and success. They’re decidedly unique in a very competitive market that includes fellow challengers Mercury, Brex, Navan, Rho, and Mesh Payments.
The addition of Ramp Treasury should further improve the company’s financial performance. The service will enable Ramp to earn a spread from its bank partners on aggregate balances across all funds held in customers' business accounts. Eric Glyman, co-founder and CEO of Ramp, emphasized the importance of this strategy by stating:
"We pass much of this back to the customer in the form of the earn rate we promote, but we do maintain some economics to ensure profitability."
Ramp's entry into the treasury services domain comes after identifying a gap in the market where many clients' linked checking accounts and deposits were earning negligible interest. Glyman noted:
"We looked at checking accounts and deposits that clients had linked to Ramp and realized that the vast majority were earning 0.00% interest."
Fuentes’s realization spurred Ramp to do something about it. With the move, it brought to market an innovative answer that increases consumer value while solidifying its own financial position.
