Ramp, a financial technology company focused on corporate expense management, is seeking to change that. They are currently in pursuit of a contract with the U.S. government’s General Services Administration (GSA) to implement a charge card pilot program. That potential contract is worth up to $25 million. Most importantly, it would allow Ramp to demonstrate its ability to manage the government’s internal expense card program, SmartPay, that administers approximately $700 billion in spending.
Founded in 2019, Ramp has quickly become one of the most prominent players in the fintech space. They’ve collectively raised more than $1 billion in equity financing and lined up at least another $700 million in committed debt funding. The company’s stated goal is to become the long-term, cost-saving alternative for private companies and public institutions.
Yet Eric Glyman, co-founder and CEO of Ramp, is on a mission to change all that. He has been vocal about the company’s objectives, especially after a blog post he co-authored with VC investor Kyle Harrison in January titled “The Efficiency Formula.” The original post described how the federal government can cut wasteful outlays.
Ramp’s growth has attracted notable investors, including Peter Thiel’s Founders Fund, Keith Rabois of Khosla Ventures, and Thrive Capital, founded by Joshua Kushner. Continuing to cement its credibility in the market is an investment from Joe Lonsdale of 8VC and former Florida Governor Jeb Bush. It did so on the heels of a recent $150 million secondary share sale that doubled its valuation to $13 billion.
The GSA’s national pilot program is kicking off at an important time. The Department of Government Efficiency (DOGE) recently announced that the U.S. government is sitting on an estimated 4.6 million active credit cards and accounts. These cards have allowed Defense to process approximately 90 million unique transactions, or $40 billion in direct spending dollars for fiscal year 2024.
Lindsay McKinley, a spokesperson for Ramp, shared insights into their current standing in the procurement process:
“Since then we have demonstrated the product and are now part of a standard RFI process.” – Lindsay McKinley
McKinley acknowledged the competitive landscape for such contracts but expressed optimism about Ramp’s technology and its potential impact on government spending.
“Ramp’s technology has prevented billions of dollars in wasted spend across the economy, and if chosen, we’ll bring those same results to the American taxpayer.” – Lindsay McKinley
McKinley noted that uncertainty remains regarding selection for the pilot program:
“We have no indication of whether we’ll be selected.” – Lindsay McKinley
Ramp is grabbing hold of this opportunity with both hands and a lot of energy. They are focused on providing cutting-edge financial solutions to reduce costs and increase operational efficiency.
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