Corporations are scaling quicker right this moment than at any level in historical past. Over at famed funding agency Andreessen Horowitz, they’ve dubbed this era “The Great Expansion.”
“Companies are going from zero to millions of users and surpassing $100M ARR [annualized recurring revenue] in less than two years—a growth trajectory unheard of before AI,” a16z’s Olivia Moore wrote final week.
Among the best examples of a startup with bonkers development is company credit-card firm Ramp. It has been hyperscaling since its inception; it was the quickest New York startup to ever attain billion-dollar unicorn standing, hitting that mark inside two years of its 2019 launch. At the moment, it was on a $10 million income run price (sure, that’s fairly a excessive a number of on income).
One 12 months later, Ramp’s income run price jumped to $100 million. Lately, the startup introduced completely in Fortune that it had surpassed $1 billion in annualized income, not lengthy after attaining a sky-high $22.5 billion valuation in a current spherical of financing.
Fortune‘s Leo Schwartz sat down with Ramp’s government group, buyers, and rivals to study the way it has…ramped up…so shortly. The result’s Fortune‘s latest cover story.
I also sat down with Ramp CEO Eric Glyman at Fortune’s Brainstorm Tech convention final week to report a dwell episode of my Fortune 500 Titans and Disruptors of Trade vodcast.
Through the interview, I requested him what he perceives because the situations for this period of unprecedented startup development. I additionally requested how he has scaled himself as CEO to satisfy the second.
Glyman responded that he takes an at all times studying, at all times self-improving strategy, calling on mentors like OpenAI’s Fidji Simo or Microsoft’s Satya Nadella when he wants recommendation. Typically, he’ll attempt to mentally put himself out of a job, questioning his priorities and delegating to a more-than-capable group. You’ll be able to watch the total video interview right here or above, and subscribe to future episodes of Titans and Disruptors on Apple or Spotify.
Right here’s a few of what we mentioned in our sit-down:
On Ramp’s explosive development and valuation:
- How Ramp added greater than $6 billion to its valuation in two months
- Why Glyman sees loads of room for continued development
- How sustaining a “sense of urgency” helps hold the corporate shifting
- What makes the corporate irresistible to enterprise capital companies
On AI:
- How Ramp is utilizing AI to automate tedious expense reviews—and why he sees the expertise releasing individuals from monotonous duties at scale
- How AI is definitely serving to Ramp’s enterprise as current research scrutinize the expertise’s effectivity
- How Ramp is utilizing AI to combat AI, significantly in circumstances of fraud
On readying himself to guide a fast-growing firm:
- How Glyman has hyperscaled himself as a CEO, by specializing in his strengths and delegating to workers he trusts
- Why he depends on mentors like former Instacart CEO Fidji Simo and Microsoft CEO Satya Nadella for recommendation
Take heed to the vodcast or learn the transcript, which has been calmly edited for size and readability, under.
Ramp’s explosive development—how the corporate acquired there and the way Glyman is sensible of it
Eric, thanks a lot for being with us right here right this moment and at a giant second in time for Ramp. You might be one of many hottest startups—you raised at a $16 billion valuation over the summer season after which, like eight weeks later, raised at a $22.5 billion valuation. You simply crossed $1 billion in annualized income, 45,000 clients.
However first I wish to simply speak about that quantity. You have a look at $1 billion in income after which a $22.5 billion valuation. Is the mathematics mathing? Or are we in some valuation hype cycle? What is occurring? How does that work?
I believe Ramp is simply rising so unbelievably shortly. Over the past 12 months, we’ve nearly doubled income. The fastest-growing public software program firms, for reference, count on and hope to develop one thing like 20% to 30% over the following 12 months. And so the rate that we’re rising at, mixed with the dimensions of the corporate, is a part of what’s getting buyers so excited.
However past it, I believe the bizarre half is Ramp is definitely rising even quicker this 12 months, and doing it whereas producing extra cashflow than we did final 12 months. And so once you mix that with the sheer scale of the market, there’s over $2 trillion spent in the US on company and small-business playing cards. Which is only one of our markets, and we’re one thing like 1.5% of that market. It’s arduous to not get excited in regards to the potential forward.
So hyperscale has been in your bones for the reason that firm’s pre-launch part. You and your cofounder, Karim, sat down collectively and also you mentioned, we wish to attempt to create a unicorn firm, which is a $1 billion greenback valuation inside 18 months. No firm in New York had ever accomplished that earlier than.
Why such an bold aim? You manifested a billion-dollar firm, since you did it inside 18 months. And inside two years, you had $100 million {dollars} in income run price.
That’s precisely proper. From two years—lower than two years from incorporation—Ramp had been valued at not simply $1 billion, however $1.5 [billion]. Inside two years of the launch of the corporate, we surpassed $100 million in income. And only a few years later, final month, we handed over $1 billion in income. For us, I believe it’s two issues. First, you hit on this side of velocity. We’re non secular about it. We depend the times. We’re 2,367 days outdated.
You realize precisely what number of days outdated Ramp is?
We do.
Why?
I believe it creates this urgency. I take into consideration leaders like Frank Slootman, who wrote Amp It Up, and simply talks in regards to the default state of a corporation. Except somebody is driving and leaders are creating tempo, issues gradual to a halt. The expectation is, you decelerate, and it’s simple to say, you realize what? Why not Monday as an alternative of doing it on Friday? We wish to instill that urgency to say, right this moment is the one day 2,367 we’re going to have, we’re going to make it depend. Additionally, when every single day you’re considering, What did we get accomplished during the last 30 days? Over the past 60?, you may measure and you can begin to make trade-offs and constraints.
You’ll be able to say, after I have a look at these final months, these actions actually mattered and moved us ahead, let’s do extra of these. And these different issues, though I favored them, weren’t as impactful. I’ve to say no to those issues so we will develop quicker. And in order that’s a giant a part of it. The final essential motive for us is that our entire mission is to assist our clients spend much less. We wish the identical for our personal firm.
What units Ramp’s company bank cards aside
That’s form of a novel concept, and I wish to speak about that, too—the thought for Ramp, and explaining it to ensure everyone understands. It’s flipping the inducement construction on its head in the best way that company bank cards have historically labored, the place the extra you spend, the extra factors you get, you’re inspired to spend extra. You truly need individuals to spend much less, which truly looks like a nasty enterprise. Is {that a} enterprise that’s viable?
Properly, a number of the largest firms on the planet are on this line of enterprise. You have a look at JPMorgan Chase, an over $800 billion firm; American Specific, a $230 billion firm, proving that you are able to do nice by getting individuals to spend. Now, I bought my final firm to Capital One, and I discovered how this business labored, what made it nice, however I discovered it so deeply unusual that, on the core, clients have been working to make the banks just a bit bit worse off by gaming the rewards techniques, and the banks have been incentivized to go and devalue the reward system to persuade individuals the factors have been value so much after which devalue it within the background. And we simply thought, this can be a large alternative.
Ramp CEO Eric Glyman talking with Fortune Editor-in-Chief Alyson Shontell at Fortune’s 2025 Brainstorm Tech convention in Park Metropolis, Utah.
Maeve Reiss
What if truly we wished the identical issues as our clients, and what if our aim was to not go and provides them the minimal factors, however truly simply assist them spend much less? You’ll be able to compete on worth. Not competing on value—who’s freely giving extra? And so I believe that was the opposite motivation in attacking this business. We believed, and we didn’t know if it will be us, however we thought on the finish of the day, that is how the business ought to settle. With firms working to make their clients higher off and clients genuinely selecting the supplier that’s serving to them develop. And I believe that’s been the massive secret behind Ramp’s fast development.
So you weren’t the primary startup on this area. There was one other competitor, and nonetheless is one other competitor, Brex, which has a valuation a lot decrease than yours. Nevertheless it was the primary mover, I suppose you would say. And at your level of launch, it was already a unicorn. So how have you ever simply plotted alongside, regardless of having this large competitor within the area, taking enterprise capital away doubtlessly, and also you’ve simply surpassed them frankly in all measures?
Yeah, we have been accused so much in our early days of being the second mover. We at all times thought we have been the one hundred and fiftieth mover on this. When you concentrate on firms, a lot of the juggernauts on this nation, they began 175 years in the past. Their founders fairly actually wore prime hats. And so it didn’t hassle us a lot to return…
You want a prime hat.
…we’ll work on it, we’ll discuss with the styling group. However look, once we approached this business, it didn’t hassle us to return into this a little bit bit later. Our view was that this was a big business that was not aligned with the tip clients. And likewise when your founders perhaps wore prime hats, I believe the significance of time isn’t one thing you’re serious about every single day. You’ve been round for so long as you’ve been alive, you’ll most likely be round…and so what’s the hurry?
We checked out these nice firms within the Valley. The Metas, the Ubers, that transfer quick, that create expertise shortly. And it was so at odds with the monetary establishments the place, when you have been transported again in time and had to make use of the financial institution accounts or the bank cards of fifty years in the past, you’d most likely be high-quality, however when you had to make use of the telephones from 50 years in the past, you and I couldn’t do our jobs.
And it simply drove house that there was little or no product innovation. And so one of many issues we got down to do in beginning Ramp was, now we have acquired to be first aligned with our buyer. [To] assist them spend much less, be extra profitable as a enterprise, needed to be precedence primary. After which quantity two, we’d attempt to construct this valley-type like firm that’s iterating in a short time, that’s measuring in days, that’s delivery merchandise each single day. We’ve shipped extra merchandise this 12 months than there are enterprise days, extra options and bulletins.
And the aim once you do this, is the expertise of how a lot time the product saved simply expands and compounds quicker. And so we’re attempting to catch up. What I believe the monetary providers business ought to have delivered during the last 50 years, we’re going to attempt to do it in only a handful, and really make our buyer’s companies higher, as a result of it issues.
How Ramp is utilizing AI—and if it’s working
You didn’t begin out as an AI firm, however would you say you’re an AI firm now? How are you utilizing it to make Ramp extra environment friendly and your clients extra environment friendly? Is it truly working in a measurable method?
For certain. So first, when you concentrate on our buyer base, we assist over 45,000 firms of all sizes and shapes, from household farms to the Fortune 500. However for almost all, particularly the small- and mid-sized companies, they don’t have a single engineer on the firm, not to mention an engineer working to make their finance division trendy, undertake AI, all of that. Right here at Ramp, we spend over 50% of our payroll on R&D, on engineering, on information science, on design, all centered on integrating the most recent and best expertise. In order that even when you’re a small enterprise, you might be benefiting from what’s occurring in these analysis labs.
Ramp cofounders Karim Atiyeh and Eric Glyman on the firm’s New York Metropolis headquarters.
Grace Rivera for Fortune
And so one of many ways in which it reveals up for a buyer is, when you go and also you faucet a card on the retailer, you’re going to get a textual content from Ramp. You snap a photograph of the receipt, and we mechanically match it to the appropriate transactions. We auto-complete the accounting class. At present, most individuals are used to bills being the worst hour of their month. Very painful, takes loads of work. On Ramp, you snap a photograph and also you’re accomplished. Your entire expense expertise takes like 10 seconds.
For many of our clients, they’re not essentially considering, I’m shopping for an AI expense report. It’s simply a neater solution to do enterprise. And it occurs to be that AI is how each single step is being sped up alongside the method. Does that make sense?
Yeah, it does. And do you’re feeling like the businesses are benefiting on the opposite finish from the AI efficiencies you’re capable of present? There are all these research out—there’s one particularly—that individuals hold speaking about the place all these company pilots are failing. And truly, persons are failing to have the ability to generate extra income because of AI, extra efficiencies from a financial perspective.
And so I’m curious—has Ramp elevated its income due to AI, and may you show that you just’re growing firms’ income due to AI?
I really like that you just requested this query. One of many issues that’s very distinctive in our business—I believe we’re the primary, and I nonetheless consider that we’re the one business to really measure how a lot cash and the way a lot time now we have truly saved our clients.
Since inception, we’ve helped our clients spend $10 billion lower than they’d’ve in any other case spent, and automatic 27.5 million hours of labor. If you have a look at the common firm although, we truly are capable of assist firms scale back their bills by over 5% per 12 months. Examine that to a rewards program. There’s not sufficient interchange to fund greater than the order of two-ish p.c of a rebate. We’re saving clients dramatically greater than what’s doable. And once you have a look at the historical past of the corporate, once you first coated Ramp once we launched in 2020, we thought we might assist the common firm lower their bills by 2%.
That’s effectively over 5% right this moment, largely as a result of AI is beginning to go and full the expense to do the books and accounting. To go and transfer cash to increased yield. It’s capable of not simply recommend, however to go and take motion as part of the method. And so I believe there are loads of firms on the market promoting AI providers however aren’t measuring the outcomes, loads of firms promoting you rewards that aren’t serious about the affect on the underside line.
Ramp, from the bounce, has been centered on: what’s the ROI, what’s the affect that we’re driving, non secular on measuring and reporting that out. And I believe that’s a part of why our internet promoter rating is within the sixties. It’s similar to an Apple, and I believe that loads of firms which might be struggling now with all of the AI they’ve bought that individuals aren’t feeling so nice about, having the client’s regret, they didn’t begin with that straightforward perception. They need to be serious about: What’s the consequence they’re driving, and the way do you measure it from the beginning?
And are you utilizing AI to additionally combat AI? As a result of I noticed a narrative the opposite day about how there at the moment are these AI receipts that look very very similar to actual receipts. And all of our workers are very reliable, however there may be a nasty egg throwing in some AI receipts in there. Are you able to catch that? How are you serious about blocking AI initiatives when it’s more durable and more durable to show if one thing’s actual, like an expense?
There’s a wide range of methods. First, it was earlier this 12 months when one of many newer GPT-4 fashions got here out, and all of a sudden it was clear that it was very simple for individuals to go and generate AI receipts. We partnered with the main labs—OpenAI, Anthropic, and others—first to create detection techniques, however now we have a repository of over 100 million receipts that we will have a look at. We’re utilizing AI to combat AI, to go and block these transactions. It’s one thing common techniques can’t do.
And subsequent, as a result of now we have a number of sources of reality—now we have the cardboard and service provider information, now we have the picture information, now we have the receipt information, now we have the accounting information—we’re a lot better than single techniques, like an Expensify or Concur, the place you simply get a picture and that’s the one factor you must go on. As a result of now we have a number of sources of figuring out whether or not this transaction occurred, it’s a lot simpler for us to detect what this receipt says, what the quantity was, or the best way the LLM generated a receipt that appears totally different than these 1 million different receipts now we have for this service provider.
That’s one massive method. The second massive method—I believe loads of waste occurs and fraud occurs as a result of managers are too busy. If you take a 100,000-person group, lots of people are spending time, most likely on this viewers, going and checking to your worker, ought to I approve or deny this expense? However the actuality is, you’re busy, you’ve one other job, you’ve most likely simply hit approve.
We’ve skilled massive language fashions to really learn your coverage in depth—it most likely has learn it higher than anybody on this room. It’s audited and seen each expense, and we’re in a position, our coverage brokers are in a position, to really go and mechanically approve 90% of transactions from the bounce. 5 p.c to 10% that want consideration, we will present you why it was in or out of coverage. It’s 99% correct, which is about 10 occasions extra correct than the common worker. And what it means is, it’s a large time saver. It’s saving managers from the time of opinions, but it surely’s additionally catching loads of issues that individuals wouldn’t catch. Individuals spending firm cash that, within the outdated world, would’ve simply gone by, as a result of nobody had the time to take a look at it.
And as you’re constructing all these instruments which might be AI succesful—effectivity and money and time saving may also equate, in a employee’s thoughts, to, Is that my job you’re coming for, Eric? So I’m curious the way you’re serious about, in probably the most sincere method, the larger imaginative and prescient: If Ramp is basically profitable in saving firms money and time, what’s going to that do to conventional enterprise capabilities? Do CEOs want an entire finance division if all goes to plan? Do they want a human assets division? Ultimately loads of the core enterprise capabilities operations. Is that the grand imaginative and prescient?
I don’t consider that AI is wise sufficient to do the job of a CFO or a whole finance operate, however it’s undoubtedly able to doing all your expense reviews. It’s undoubtedly able to categorizing transactions. And I believe for most individuals, I don’t assume you’re including deep human intelligence once you’re going and snapping a photograph and also you’re describing what you acquire and also you’re going and tagging transactions. It’s very low-level work and, for most individuals, it’s simply the worst hour of your month. Why not automate these horrible elements of your job away? It permits your finest salespeople to go and spend that final hour promoting and really doing the work they have been meant to do. And so we’re very a lot in that part of making loads of delight and pleasure for individuals of their roles.
I believe once you summary it and also you look extra long run, you concentrate on: What’s the finance operate? The place are individuals spending time? And at the least on the spend aspect, loads of it’s actually simply algorithms. It’s going and figuring out who ought to spend what underneath what circumstances. As soon as the spend has occurred, how do I categorize it accurately? That takes loads of work.
After which primarily based on what occurs, how do I goal-seek to a greater consequence the following time? A lot of the finance operate right this moment, I’d argue, on the order of 80% of it, is definitely trying backwards. It’s attempting to determine: What did we do? What did we spend on? What’s occurring within the enterprise? It’s not asking the attention-grabbing questions that most individuals in finance acquired in it to do, which is, How do I make this enterprise higher? How can we spend on the issues that matter? The place is worth? How do I allocate capital higher? And I actually am a agency believer that the low-level work that individuals don’t wish to do will go away.
However I consider, and I’m pretty optimistic, that when your books are maintaining themselves, cash finds its solution to increased yield. One, for companies, you’re going to have much more on the finish of the day. For the common American enterprise, they’ve an 8% revenue margin. In case you can go and develop it even by 1%, it’s equal mathematically to a 12% enhance in income. And so I believe that bottom-line affect—to create extra margin, to take a position extra—goes to be profound. And second, I believe for individuals, the work goes to be extra attention-grabbing. A minimum of as far forward as I can see and picture, however we’re simply excited to be engaged on it.
The inflow of consideration, and money, from buyers
What’s it prefer to be the new woman on campus? How frothy is it on the market, and have been you shocked by a number of the investor habits you’ve seen, given your final firm solely raised $2 million and now you’ve raised over a billion? Barely totally different. So, what’s it like on the market to be a fundraising startup that each investor appears to wish to have a chunk of?
I believe for buyers, I empathize definitely within the enterprise business. There are extra buyers than ever.
Everybody’s a VC.
It looks like it. There may be loads of capital, and I believe individuals need to discover yield. And a few of this speaks to how the world is altering quicker than ever. We’re in a world now the place computer systems can see and listen to and assume and motive, and that’s weird and has all types of profound implications. And I believe we’re, in some sense, multi-trillion greenback bounce balls in numerous industries. And I believe that the stakes are very excessive, and that’s a part of why individuals need to make investments. I’d additionally say that firms are rising quicker than they ever have earlier than.
A younger Karim Atiyeh and Eric Glyman, then cofounders of Paribus, now cofounders of Ramp.
Noam Galai—Getty Photos
Is that as a result of there’s a lot cash sloshing round? Why is now the second? The numbers you’re hitting appear unfathomable from even a couple of years in the past.
One, I believe that AI is making individuals extra productive. However two, I simply assume that when firms are capable of develop, and Ramp is doing this whereas producing money at an unprecedented scale, VCs have a look at this and say, how might I not put money into it? As a result of when you’re doubling annually at this type of scale, inside months, that spherical that appeared costly, proved to be low-cost and cheap. And so I believe that’s a part of what’s driving this demand.
There are fewer firms which might be rising quicker than ever. However I take into consideration one other firm, Cognition. It’s a beautiful firm that began on Ramp. Cursor is one other one. These organizations should not but two years outdated however are doing 9 figures of income. And a part of that is, they’re capturing the second and promoting new sorts of providers. However the different a part of it’s, their finance groups are benefiting from unbelievable expertise that, within the outdated world, it simply would’ve been a lot harder to construct up the abilities inside the corporate to cope with this development. And so I simply assume the instruments for builders are higher now than ever earlier than.
Does it ever make you nervous to be like, I began this firm 2,300-whatever days in the past, and we’re value 22.5 billion? The fulfilling on that, and particularly if an IPO is on the horizon and also you’re going to be answering to buyers… nervousness, pleasure?
Look, I’m in my mid-thirties. I believe you at all times look as much as individuals, many on this room who’ve been constructing nice organizations, and wished to be that at some point. And so I really feel very fortunate to have the chance to do that and to have the ability to work on one thing that I’m actually enthusiastic about. However for me, I believe valuations in some sense are a spinoff. It’s not the factor, it’s not the rationale. Income comes from clients genuinely feeling that their belief was effectively earned. That once they signed up for a product, it truly delivered, and it delivered a lot that they instructed different companies about it. That we made their enterprise higher and extra worthwhile, that they’re capable of develop quicker.
And in some sense, I believe for anybody constructing the enterprise, you begin these items, I consider, since you hope to make a distinction on the planet in some form of a method. So the valuation is one factor, however the numbers I care far more about are actually: How a lot did we save clients this month? Did we make individuals higher off? And I believe that’s why a number of the finest engineers on the planet wish to come to Ramp. I believe that’s a few of why the most effective designers are engaged on … you wouldn’t assume that these persons are desirous about company playing cards and expense administration.
Not so horny of an business, however but you’re crafting nice expertise.
We expect it’s now. And it’s not simply the new yellow that the Ramp model is doing, and the enjoyable adverts. I believe it’s for individuals who wish to matter on the planet and have some form of an affect. I believe this can be a possible way to do that, and do it shortly.
So Eric, for a ultimate query, I wish to form of get inside your mind as a CEO. It’s actually arduous to be a CEO lately, as you realize, and navigate all of the change. And I can’t think about what it’s prefer to go from you sitting there with Karim, considering you’re going to start out this large superior firm, simply 2,000-plus days in the past, to what you’ve achieved right this moment. How have you ever scaled your self? How have you ever gotten your self prepared to satisfy the second of what Ramp is right this moment?
I attempt to strategy it with loads of humility. There’s loads of issues I don’t know. And I believe one of many issues of compounding development is that, what allowed you to develop by 100% during the last 12 months will, by definition, when you don’t do one thing about it, you would possibly solely develop 50% the following 12 months, 25% the following. And so you may know definitely what acquired you right here won’t get you there. And so it forces you to consistently look within the mirror and say, Okay, what was I nice at that I would like to surrender? As a result of the sport has modified so much. And so I believe it’s loads of simply being actual about that. It’s not about getting a little bit bit higher on the small set of issues, however truly attempting to place your self out of the job very, fairly often.
Do you mentally attempt to put your self out of a job?
I do.
How do you do this? Do you concentrate on what dangerous Eric might do right this moment? How do you concentrate on that?
Properly, there are issues that you just study your self. For instance, I’ll put it this fashion. If there are 100 issues to do, I’m the form of person who’s like, What are the highest 10 most attention-grabbing issues? And I’ll do these and drop the opposite 90. And within the early days, no large deal, however sooner or later that can kill you, as a result of these different 90 issues must get accomplished.
So I attempt to search for nice operators, people who find themselves not going to drop the ball, people who find themselves higher at gross sales, higher at items of promoting, higher at engineering. I truly assume it’s a pleasure to go and discover individuals who can educate you issues, put them into roles, and provides them the work. And attempt to deal with the areas that simply I can do, or perhaps I’ve a little bit little bit of an edge, and really make sure that the return to my time is increased.
And so a few of it’s attempting to encompass yourselves with nice mentors. I take into consideration individuals like Fidji Simo. She was the CEO of Instacart, took them public, now she’s at OpenAI. Satya Nadella is a good mentor. And I believe some individuals pursue coaches. I attempt to name individuals up for an hour at a time, the place if I can simply get their recommendation on AI or advertising or gross sales and study just a bit bit. Ask them who they’ve discovered so much from particularly fields and simply bounce from individual to individual.
And that’s been very useful. After which final, I believe on the finish of the day, all an organization is is a group of individuals. You overlook it alongside the best way, but it surely’s nonetheless true. And I believe that when you can go and construct a robust group, attempt to empower individuals to double down on what makes them nice, not repair their deficiencies, that’ll assist you’ve a way more well-rounded firm. And so I’m nonetheless studying. Open to recommendation and attempting our greatest, but it surely’s been a really enjoyable experience.
Properly, Eric, it has been so enjoyable to observe what you’ve constructed at Ramp, and we’re going to proceed to observe it at Fortune. Choose up the following challenge, you’ll see a giant characteristic on Ramp and their explosive development. However thanks for spending time with us right this moment.
Thanks a lot, Alyson.
