- Ramp debuts Ramp Treasury to help businesses earn interest on idle funds.
- The free, FDIC-insured account offers 2.5% interest or an investment account with rates up to 4.38%, all without fees or transfer limits.
- This is Ramp’s first foray into holding deposits. The company is partnering with First Internet Bank for the deposits and Apex for investments.
Business finance automation platform Ramp unveiled a new product today called Ramp Treasury that helps businesses earn more interest on their idle funds without sacrificing liquidity.
Ramp customers can use Ramp Treasury to store their cash in a free, FDIC-insured account that earns 2.5% interest or choose to invest it in a money market fund via the Ramp Investment Account which offers rates as high as 4.38%. The liquid FDIC-insured account does not charge fees, require a minimum deposit, or have transfer limits.
“Every day your money sits in limbo waiting to settle is a day of missed earnings — hidden costs that quietly chip away at your bottom line,” the company said in a blog post.
Ramp Treasury is integrated into its AP workflow to ensure that business’ operating funds are earning interest. Ramp’s accounts allow businesses to manage all of their treasury and AP workflows in one place, set multi-step approvals, create authorized users, sync with their ERP without manual reconciliation, and more.
This is Ramp’s first foray into holding users’ deposits. Prior to the launch of Ramp Treasury, Ramp only offered corporate cards and spend management tools. The New York-based company is partnering with First Internet Bank of Indiana to hold cash deposits and leverages Apex for investments. Interestingly, Ramp competitor Brex applied for a bank charter in 2021, but later decided to withdraw its application.
Ramp was founded in 2019 and has experienced notable growth, especially in the past year. The company has doubled its customer number in the past year, accelerating from 15,000 to 30,000. And while Ramp is not disclosing current revenue figures, in the summer of 2023 it reached $300 million in annualized revenue.
Since it was founded in 2019, Ramp has grown to 1,000 employees, has raised $1.8 billion in funding, and has acquired three companies, most recently purchasing Venue to improve its Procurement product automations. Despite all of its growth, however, it doesn’t look like Ramp is focused on joining the 2025 fintech IPO bandwagon. “We are just trying to build a great business, regardless if it’s private or public,” Ramp CEO and co-founder Eric Glyman told TechCrunch.
Photo by Tima Miroshnichenko
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