Levelpath, a startup software founded by the duo behind Scout RFP, raised $ 55 million in a B -funding series led by Battery Ventures, as the company looks quadrupling its income this year.
The financial circle also saw the participation of existing investors, including Benchmark, who led $ 14.5 million seeds, and Redpoint, the main investor in the $ 30 million Series A -round announced in 2023.
The starting was founded by Stan Garber and Alex Yakubovich (pictured on the right), whose previous startup, Scout RFP, was acquired by Workday for $ 540 million In 2019. During their three years Yakubovich and Garber spent working on a working day, the two identified constant shopping challenges that motivated them to build a mobile first, using platform.
Levelpath’s time limit proved robust; Launching exactly as ChatGPT debutable enabled the start to integrate AI -skills from its inception. This includes reviewing unstructured data in contracts and recommend less expensive, similar products and services. The company now calculates ACE device, Amgen, Copang, and Siriusxm as customers.
The investment signals confidence in Levelpath’s rapid growth and its potential to disapprove market dominated by hereditary players. Procurement software has long been controlled by outdated vendors such as Coupa and Ariba, whose clumsy systems often drive employees to bypass official processes. This “cowardly” expense using corporate credit cards often results in spending and missed opportunities for wholesale discounts, according to the general partner of Battery Ventures Neera Agarwal.
In fact, buying represents the second largest expense of companies after pay, making software improvements particularly valuable. The purchase software market was rated at $ 7.3 billion annually In 2023, according to Fortune Business Insights.
Although Levelpath is a newer and probably smaller player compared to its main competitors – including Zip, estimated at $ 2.2 billion past fall, and Gold Labs, supported by Felicis – the company seems to have all the right ingredients, including Agrawal, who led Battery Battery Bettery series in Copa and joined Levelpath’s board.
Coupa of course has grown in one of the most successful shopping companies of its era. It had success IPO in 2016 and eight years later, was taken private by PE -Company Thoma Bravo for $ 8 billion.
Agrawal, who probably understands what it takes to build a large company in this category, is equally impressed with the technology of Levelpath and its founders. “They have such a strong reputation to deliver a product, to be good people with whom to work and do what they say they will do,” Agrawal told Techcrunch. “Customers want to work with them and help them build this next generation.”
Yakubovich and Garber befriends since high school in Ohio. They joined their common heritage as immigrants from the former Soviet Union and mutual interest in entrepreneurship. The couple has collaborated for over 20 years, and their stated goal is to help customers enjoy, instead of avoiding, using purchase programs.
While purchasing could seem a world business function, it offers a direct and significant return of investment by helping companies save money.
“It makes the money registry ring for these savings,” Agrawal said.
