Ramp, a developer of financial management software, has raised $300 million in its latest funding round to accelerate expansion in new categories, the company said on Tuesday, notching up a valuation of $5.8 billion.

The new funding is at a lower valuation from the $8.1 billion achieved by the New-York based startup in a funding round last year, according to reports.

Valuations of financial technology startups have been hit as interest rates remain high and investors fret over a looming economic slowdown, leading to a shift away from cash-burning firms and toward those with greater focus on profitability.

The latest funding round was co-led by Thrive Capital and Sands Capital along with existing investors Founder's Fund and General Catalyst among others.

Ramp, which offers a corporate card platform used by over 15,000 businesses, was founded in 2019. Previous investors in the fintech include Microsoft Corp CEO Satya Nadella, Goldman Sachs, Redpoint Ventures and Thrive Capital.

The financial management company intends to expand its software into adjacent categories in an attempt to make customer's businesses more "efficient", said Chief Executive Officer Eric Glyman.

Ramp had planned to offer new artificial intelligence tools, including a feature that could determine if a company was overpaying on its software contracts.