Chief executive Abdulmajeed Alsukhan told Reuters that the region was better positioned for “buy now, pay later” because high oil prices have boosted the local economy.īritish payments company Super raised roughly $26.5 million in a funding round led by Accel. , Shorooq Partners and Coatue also participated in the round. Saudi “buy now, pay later” company Tamara raised $100 million in a series B funding round led by Sanabil Investments. Ryan Deffenbaugh ( email | twitter ) A version of this story first appeared on. "There are a lot of folks doing a lot of great things in this industry. There's small industries, medium, large, fintech," Glyman said. "It is often hard to wrap your head around how many businesses there really are, and just how much $120 trillion really is. To stand out, the fintechs are “trying to own the corporate wallet,” said Robert Le, a fintech analyst with PitchBook. Ramp competes with Brex, Airbase and Divvy, which bought for $2.5 billion last May. ’s total volume of payments sent through its software climbed 46% year-over-year to $61 billion for the quarter. The San Jose company was able to shrug off reduced business spending in categories such as advertising because of momentum in getting small and mid-size businesses to digitize and automate payments. It reported a 156% jump in quarterly revenue to $200 million. is making a similar bet on efficiency.But even as companies cut back spending in the face of an uncertain economy, Ramp is betting it can keep growing because firms believe digitizing billing and payment can save costs in the long run. The firm derives most of its revenue from interchange fees on purchases. The startup introduced its Bill Pay service in October. Ramp launched three years ago, focused on corporate cards and spend-management software.It has raised more than $1 billion total in debt and equity. The company in March raised a reported $550 million in debt and $200 million in equity at an $8.1 billion valuation. Spend management firms like Ramp have a lot of financial fuel to broaden their offerings. Glyman anticipates that Flex funding could be particularly useful in helping companies manage expenses such as inventory, especially in an era when supply chain delays are common. Ramp pays the vendor the bill and collects the total from its customer after the agreed-upon time frame, plus a variable percentage of the total cost (press materials shared by Ramp showed charges between 1% and 3%). Its new Ramp Flex product, which is launching on a limited basis, will cover invoice payments for 30, 60 or 90 days."But there are cases where it may not be possible. "There is a trend that businesses are wanting to put things on card for the convenience or the cash back," said CEO and co-founder Eric Glyman. New York-based Ramp is hoping to serve more of that market by offering short-term financing on invoice payments.Citing data from Visa, Ramp said only about $1.5 trillion out of $120 trillion total is paid through credit or charge cards, which is Ramp’s lead product. There’s a big opportunity in business-to-business payments. The two companies are players in an increasingly competitive market for corporate spending, where offerings can include charge cards, invoicing software and automated accounting. The announcement comes a week after, which helps small and mid-size businesses digitize invoice payments, announced a nearly 160% quarterly revenue boost that sent its shares soaring on Wall Street. Ramp, a corporate card and spend-management startup, launched a new financing option for its bill-pay product Tuesday that will allow customers to stretch - or "Flex" - payments between 30 and 90 days. Fintech firms focused on consumers are struggling, but business-oriented firms believe they can continue growing by helping corporations be more efficient in digitizing the trillions of dolllars they pay each other every year.
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