Ramp is using a freemium strategy to disrupt the corporate card game
The Hustle

Ramp is using a freemium strategy to disrupt the corporate card game

Ramp is a startup that offers corporate cards and spend management software that is valued at $3.9B.


August 26, 2021

When you think about using your corporate card, the first words that come to mind probably aren’t “spend less.”

Ramp, a startup that offers corporate cards paired with spend management software, has used this positioning to more than double its valuation in less than 5 months.

The company raised $300m in a new round that values the firm at $3.9B, per TechCrunch.

Ramp launched its 1st corporate card in 2019…

… and gave it away for free. The company only makes money on interchange fees, which differs from the OG of the corporate card world, AMEX.

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This freemium strategy has helped drive rocketship growth over the past 2 years, including:

Come for the free cards, stay for the software

Ramp pairs its free corporate cards with free software that helps businesses automate expense management, and increase savings with built-in spend limits.

The startup took a step towards offering a holistic spend management platform with its 1st acquisition: Buyer, a negotiation-as-a-service platform that helps businesses save money on software purchases.

The spend management space is getting crowded fast

Since the beginning of 2021:

Ramp plans to use its new funding for hiring, marketing, partnerships, and product — all of which should help the startup continue Ramp-ing up its growth.

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