New York-based Ramp, a corporate card and expense automation platform, raised $300 million at a $5.8 billion post-money valuation — a 28% drop from its previous valuation.
The new cash comes just 15 months after the fintech startup raised $750 million in debt and equity in a financing that set a valuation of $8.1 billion.
Ramp, which has more than 15,000 customers, will use the money for product development and hiring. The company recently moved into the procurement space. In June, Ramp acquired an AI-powered customer support platform Cohere.io.
Ramp joins the growing list of startups that have had to face the new realities of the private market after a record-shattering run.
Many startups have had to recalibrate their valuations as investors have pulled back on funding and put more value on profitability and cash flow.
Large private companies such as Klarna and Stripe also have raised down rounds as the venture market has continued to slow since its highs of 2021. Just last month, Atlanta-based OneTrust became one of the latest unicorns to raise a down round, as it locked up a $150 million round at a $4.5 billion valuation — a 12% drop from the $5.1 billion valuation the privacy and security startup garnered after it raised a Series C in late 2020.