Earlier this year Divvy, a Utah-based software company that provides corporate spend management software, raised a $165 million round at a $1.6 billion valuation. It followed its competitor Brex to unicorn-status as the market for financial services software and corporate payment solutions stayed red-hot in 2021 after a blockbuster 2020.
Now Ramp, a competitor to both Divvy and Brex, is looking to raise new capital from Stripe and D1 Capital Partners at a valuation that could top $1 billion. The Information first reported the news, which TechCrunch confirmed with a source familiar with the transactions.
Ramp also competes with startups like Airbase and Teampay, each providing software designed to help companies allow, administer and track corporate cash outflows. The startup category is perhaps best known for its concept of providing company cards to startups and other SMBs, though its market has since matured into financial software designed to provide a central node for internal expense controls.
The pace of investment into startup cohorts has been aggressive. Brex raised $150 million after the pandemic set in, while Ramp raised several times last year before adding a debt facility earlier this year to its financial backstop. Airbase also raised last year, sharing growth metrics as 2020 came to a close. Teampay added $5 million to its 2019-era Series A last year as well.
And in a sign that the model of fintech startups building corporate spend software could prove popular in other markets, a Latin American-focused startup in the space called Clara raised $3.5 million earlier this month.