Ramp Targets Charge Card Pilot Program with U.S. Government
Expense management startup Ramp is reportedly in the running for a pilot program with the General Services Administration (GSA) of the United States government. This initiative, part of the SmartPay program, is a significant undertaking within a $700 billion expense card initiative.
SmartPay Overview
The SmartPay program, which oversees internal government expense accounts, is poised to test new technologies to streamline expenditures. According to sources, the contract for the charge card pilot program that Ramp is vying for could be valued at up to $25 million, as indicated in a ProPublica report.
Lobbying and Advocacy Efforts
Since January, Ramp has been actively seeking engagement with government officials to promote its expense management solutions. In a blog post titled “The Efficiency Formula,” co-founder and CEO Eric Glyman, along with investor Kyle Harrison, outlined potential avenues for the government to cut inefficient spending. This initiative coincided with the establishment of the Department of Government Efficiency, which was influenced by Elon Musk’s governance vision.
Ramp’s Connections and Investor Background
Ramp’s ties to influential stakeholders, including notable investors such as Peter Thiel’s Founders Fund and Thrive Capital—co-founded by Jared Kushner’s brother Joshua—add to its profile within political and financial circles. The company also has support from allies like Joe Lonsdale of 8VC and Jeb Bush, former governor of Florida.
Procurement Process
According to Lindsay McKinley, Ramp’s head of communications, the company is currently part of a standard Request for Information (RFI) process, competing based solely on the merits of its solution. McKinley emphasized Ramp’s capability to curb unnecessary spending, stating, “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.”
Ramp’s Role in Government Spending
Despite the startup’s focus on corporate solutions, McKinley noted the U.S. government’s existing framework of expense policies, suggesting potential compatibility with Ramp’s offerings. She referenced a public announcement from the Department of Government Efficiency indicating that around 4.6 million active credit cards/accounts in the government processed approximately 90 million unique transactions, totaling nearly $40 billion in expenditures for fiscal year 2024.
Recent Developments
Following an introduction by a prior customer, Ramp has entered the GSA’s procurement discussions. However, McKinley mentioned, “We have no indication of whether we’ll be selected.”
Financial Growth
In March, Ramp achieved a significant milestone by doubling its valuation to $13 billion, following a $150 million secondary share sale. Since its inception in 2019, Ramp has successfully raised over $1 billion in equity and secured an additional $700 million in debt funding.
