Levelpath secures $55M for next-gen procurement platform
▼ Summary
– Levelpath, a procurement software startup founded by Scout RFP’s creators, raised $55M in Series B funding led by Battery Ventures to accelerate revenue growth.
– The startup was co-founded by Stan Garber and Alex Yakubovich, who previously sold Scout RFP to Workday and identified procurement challenges they aimed to solve with Levelpath.
– Levelpath integrates AI from its inception, enabling features like contract data review and cost-saving product recommendations, with clients including Ace Hardware and SiriusXM.
– The procurement software market, valued at $7.3B in 2023, is dominated by outdated vendors, creating opportunities for Levelpath to disrupt with user-friendly solutions.
– Battery Ventures’ Neeraj Agrawal, who backed Coupa’s growth, joined Levelpath’s board, praising its founders’ reputation and next-gen product potential.
Levelpath, the procurement software startup founded by Scout RFP’s creators, has secured $55 million in Series B funding to accelerate its mission of modernizing corporate purchasing. The round was led by Battery Ventures, with participation from existing investors Benchmark and Redpoint, signaling strong confidence in the company’s trajectory.
The brainchild of Stan Garber and Alex Yakubovich, Levelpath builds on their prior success with Scout RFP, which Workday acquired for $540 million in 2019. Their experience at Workday revealed glaring inefficiencies in procurement, prompting them to design a mobile-first platform that prioritizes ease of use. Unlike legacy systems, Levelpath integrates AI from the ground up, leveraging tools like ChatGPT to analyze contracts and suggest cost-effective alternatives.
The timing couldn’t be better. As businesses grapple with outdated solutions from incumbents like Coupa and Ariba, Levelpath’s intuitive approach is gaining traction. Battery Ventures’ Neeraj Agrawal notes that clunky procurement tools often push employees toward unauthorized spending, costing companies millions in missed bulk discounts. With procurement ranking as the second-largest corporate expense after payroll, the stakes are high.
Already, Ace Hardware, Amgen, Coupang, and SiriusXM have adopted Levelpath’s platform. Though smaller than rivals like Zip and Oro Labs, the startup’s combination of cutting-edge tech and seasoned leadership, including Agrawal, who previously backed Coupa, positions it as a formidable disruptor.
Garber and Yakubovich’s partnership spans two decades, rooted in their shared immigrant background and entrepreneurial drive. Their vision? To transform procurement from a bureaucratic chore into a seamless, even enjoyable process.
For investors, the appeal is clear. Procurement software represents a $7.3 billion market, and Levelpath’s rapid growth suggests it’s poised to carve out a significant share. As Agrawal puts it, “Customers want to work with them because they deliver.” With fresh capital and a proven team, the startup is well on its way to redefining how businesses spend.
(Source: TechCrunch)
