News(ish) #3: Eric Glyman, CEO @ Ramp on the Bill.com + Divvy Acquisition
Why Bill.com is buying Divvy to build an on-Ramp to corporate cards
Happy Weekend Fintech Family,
We’re back with more news and a special guest! Eric Glyman, CEO @ Ramp joined Lindsay (Head of Markets @ Atomic) and I to breakdown the $2.5B acquisition of Divvy.
Here’s this week’s episode: Spotify + Apple
Lindsay penned a great synopsis here. I added some of the key fast funding facts that Lindsay put together here as well:
Fast Fintech Facts:
Divvy
Total Deal Valuation: $2.5 billion
Deal Terms: $625 million in cash and $1.87 billion of Bill.com common stock
Traction: 7,500 monthly active small and medium-sized businesses (SMBs)
Total Payment Volume (TPV): $4 billion annually
Target Demographic: Corporate cards for SMBs and tech startups
Total Funding Prior to Acquisition: $417.5 million
Bill.com
Market Cap: $12.7 billion (as of 5/7/21)
Traction: 115,000 customers with a reach of 2.5 million members
Target Demographic: Accounting, expense management, and budgeting software for SMBs
Q1’21 Earnings: $59.7 million in revenues
Ramp
Total Raised: $320 million in equity and debt
Last Funding Round: $115 million Q1’21
Valuation: $1.6 billion
Target Demographic: Tech startups and small businesses
Differentiators: Incentivizes corporate savings versus spending to earn points by offering companies 1.5% across every transaction. In an example, if a company had $200,000 monthly burn rate, they’d earn $36,000 in cash back annually.
Until next time Fam,
ZAP
Zach Anderson Pettet