Corporate card startup Ramp said to be raising a down round

Corporate card and spending management startup Ramp is raising a new round of funding at a steep discount to its last valuation, The Information reports.

Why it matters: The decline in valuation reflects a dreary fundraising environment for late-stage fintechs — especially those who last raised at the peak of the market.

What's happening: Ramp is reportedly raising hundreds of millions of dollars in new funding at a $5.5 billion valuation — a more than 30% discount to the $8.1 billion valuation it commanded last year.

• Thrive Capital is leading the financing, which will include a mix of new shares and some held by employees, according to the report.

By the numbers: The startup is expected to process at least $13 billion in total payments volume, up from $7.5 billion in 2022.

Flashback: New York-based Ramp has raised more than $1 billion in financing to date, including $750 million in debt and equity in March 2022.

• That raise included $200 million in equity financing led by Founders Fund and another $550 million in debt financing from Citi and Goldman Sachs.
• Other investors included D1 Capital Partners, Redpoint Ventures, Coatue, Iconiq, Altimeter, Stripe, Lux Capital, Vista Public Strategies, Spark Capital, Definition Capital, General Catalyst, Avenir Growth Capital, 137 Ventures and Declaration Partners.

The big picture: Ramp isn't alone in agreeing to a valuation cut while raising new funds.

• Earlier this year, Stripe raised new funding at a $50 billion valuation, a sharp decline from the $95 billion valuation it previously held.
• That follows an 85% cut to Klarna's valuation in its most recent financing round.