Expense management startup Ramp has nearly doubled its valuation to $13 billion after a $150 million secondary share sale, the company announced Monday morning. This massive bump in valuation comes after Ramp was valued at $7.65 billion last April when it raised $150 million in a Series D extension co-led by Khosla Ventures and Founders Fund.

The secondary share sale saw new and existing backers, including VC Stripes, GIC, Avenir Growth, Thrive Capital, Khosla Ventures, General Catalyst, Lux Capital, 137 Ventures, and Definition Capital, buying shares from employees and early investors. This influx of capital will likely provide Ramp with the necessary resources to continue its rapid growth and expansion into new areas.

Ramp has made significant strides in the past year, growing its customer base to over 30,000 companies across various industries. The startup's payment volume across card transactions and bill payments has also spiked to $55 billion, up from $10 billion in January 2023. Notable customers include Poshmark, Anduril, Notion, and Cursor, among others.

Ramp's CEO, Eric Glyman, attributed the company's success to the benefits of AI in its operations, stating that "AI is fundamentally changing how businesses operate, and we're ensuring our customers are at the forefront of this transformation." The company has also been able to keep its burn rate low, with an average of less than $2 million per month in 2024.

Ramp has built a name for itself in the corporate card and expense management space, branching out into travel, bill pay, and, more recently, treasury products. The company's treasury product, released in January, has it encroaching into digital bank territory. While Ramp is staying mum on its current revenue figures, it saw its revenue grow by 4x in 2022, led by its fastest-growing segment of bill pay.

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

Ramp operates in a crowded space that includes the likes of Brex, Navan, Mercury, and others. Mercury is reportedly raising new funds in a round led by Sequoia at a valuation of over $3 billion, which would be twice what it was valued at in July of 2021 at the time of its last raise.

Looking ahead, Glyman has expressed plans for an IPO in the long term. With its valuation now at $13 billion, Ramp is poised to continue its rapid growth and expansion into new areas, solidifying its position as a leader in the expense management and fintech spaces.