Not every company is having a hard time with this recession.
Despite a cooling market, Ramp, a business expense management startup, reports that it has more than doubled its revenue since the beginning of the year.
The performance would be impressive in normal times, but is especially true when tech companies – large and small – quit, freeze hires and/or report slowing growth. But it’s even more remarkable that a startup — in an increasingly competitive environment — more than doubles its revenue in a matter of months amid deteriorating market conditions.
driveway confirmed in March that it had secured $550 million in debt and $200 million in equity in new financing that: doubled his rating to $8.1 billion.
Now the company isn’t just seeing more SMB customers – a logical assumption given that Ramp’s biggest competitor Brex recently announced it was largely stop serving companies in that category. According to CEO and co-founder Eric Glyman, the company is seeing an increase in all stages of the company’s maturity.
Especially in June he said Ramp closed a total of 38% more business — expected revenue from new customer signups — than in May. Interestingly, the company saw the most growth in its business segment – with more than 300% increase in customers there. It also saw a more than 50% increase in mid-market customers and about a 22% increase in SMB customers. The June growth rate is more than double, or about 221% higher than the December 2021 figures, the company said. While Glyman didn’t release any hard sales figures, he did point out that the company had crossed the line $100 million in annual sales before his third birthday in March. This is, he added, while holding more than 80% of his equity on the balance sheet.
Remember that Ramp gets its revenue from interchange fees. For every transaction it allows, Ramp receives a portion of its expenses as revenue. Annualized Revenue is the exchange earned in the most recent monthly period, on an annualized basis. Let’s also not forget that rival Brex – which started offering credit cards to startups – stated earlier this year that it “a big pushboth in software and enterprise.
“We believe Ramp’s ability to help its customers spend 3.5% less is uniquely attractive and valuable to businesses in this macroeconomic environment,” Glyman said.
“Our greatest hope is to get to work for more companies that want to cut costs, become efficient and do so in ways that improve the quality of the business, while retaining the ability to make investments and improve people and workforce. support,” he says. told londonbusinessblog.com in an interview.
Last week, another player in the space, Airbase, said it had secured $150 million in debt financing led by Goldman Sachs. Interestingly, while that company has generated most of its revenue from software in the past, it is now improving its card offerings.
CEO and founder Thejo Kote told londonbusinessblog.com that generating SaaS revenue for the company remains his priority. But, he said, as the company has served medium-sized and early businesses over the years, it has offered them a pre-funded card that they could use to make purchases. In recent months, however, Airbase has come to realize that many could take advantage of the opportunity to make purchases with “30 days of float,” the director said.
“We started offering a charge card model because as we continue to grow and scale our sales and expand our customer base more aggressively, we have found that there are definitely customers who can’t afford to give up the 30 days . float that a card gives them, either for cash flow reasons or for philosophical reasons,” Kote said.
Meanwhile, while Ramp provides software, exchange remains the largest source of income. And going forward, the 350-strong company plans to operate with the same strategies that have propelled it to date.
“We’ve been conservative in our use of funds and committed to being operationally efficient,” Glyman said. “We’ve been very lean and effective, and we’ve managed to meaningfully retain over 80% of the capital we’ve ever raised. If we look at the size of people who are in the same industry category, they generally have a lot more employees for a similar or significantly smaller revenue scale.”
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