Ramp, a two-year-old startup that offers corporate cards and software tools for managing employee expenses, is close to finalizing two rounds of funding that will value the company at $1.6 billion, according to three people familiar with the deals.
D1 Capital Partners led the first, $65 million round at a $1.1 billion post-money valuation with participation from payments company Stripe and existing investors Coatue Management and Goldman Sachs. Seeking a bigger stake in the company, Stripe is now leading another, $50 million investment in Ramp at the higher post-money valuation of $1.6 billion, two of the people said.
The deals reflect the frenzied investor interest in fintech startups, companies providing technology to make it easier for people to transact, save or spend money. It’s also another instance of hedge funds and other nontraditional private tech investors taking stakes in early-stage companies in hopes of earning outsize returns.