Meet Ramp, a new startup that offers corporate credit cards with 1.5% cashback on everything. The company believes that a cash back program, combined with an analysis of your payments to help you spend less, is more valuable than alternative company card offers.
Ramp is publicly launched today and has raised $ 25 million from Keith Rabois, Coatue, BoxGroup, Conversion Capital, Soma Capital, Backend Capital and more than 50 business angels.
The startup does not charge any fees. All of your employees can have a white Visa card for $ 0 a month. There are no foreign transaction fees and no interest. The company plans to make money with exchange fees – as with all card issuers, Ramp will see a very small reduction in all transactions.
One of Ramp's key selling points is that it gives you control and transparency. You can set different limits for each employee, create as many cards as you like and set up output rules. The service also helps you centralize receipts and attach them to each issue. There are some integrations with accounting software.
Like Brex, Ramp will work particularly well with high-growth start-ups. When you register, Ramp does not need any personal guarantees. You also get higher spending limits than traditional company cards. According to Ramp, you can expect limits that are 10 to 20 times higher than the usual limits.
Unlike Brex, Ramp doesn't have a complicated point-based reward system. If you order a Lyft card or book flights through Brex, you will receive no further points. Instead, Ramp gives you a 1.5% discount on all your purchases – this can be a recurring subscription, an expensive flight, a team lunch … 1.5% on everything.
Existing customers include some well-known startups such as Ro, Candid, Better, Eight Sleep and Truebill.
Ramp goes one step further and analyzes how you spend money. For example, if you pay multiple subscriptions for the same service, Ramp will mark this as a double subscription. If you are spending an unusually large amount of money on a particular service, Ramp recommends a lower subscription level.
The startup also offers free credits for dozens of third-party services such as Amazon Web Services, Amplitude, Plaid, Datadog, DocSend, Notion, Twilio, Sendgrid, etc. A total of $ 175,000 in free credits are available.
Ramp was founded by Eric Glyman and Karim Atiyeh. The team previously founded Paribus, a startup that can help you save money on online purchases made by CapitalOne.
Overall, it's a solid offering. There are probably many startups looking for a simple corporate card solution with a cashback program. And the fact that Ramp wants to help you spend less money shows that the startup is more about a good user experience than about generating quick earnings.