Levelpath Raises $55 Million to Transform Procurement Software Landscape

Levelpath, an innovative procurement technology company founded by the creators of Scout RFP, has secured $55 million in a Series B funding round led by Battery Ventures. The startup plans to quadruple its revenue within the year, reflecting strong market traction adn accelerating growth.

Strong Investor Support Accelerates Growth Trajectory

This recent capital infusion saw participation from returning investors including Benchmark, which spearheaded Levelpath’s initial $14.5 million seed round, and also Redpoint Ventures, the lead backer in thier earlier $30 million Series A financing completed this year.

Founders’ Deep Industry Insight drives Innovation

Stan Garber and Alex Yakubovich launched Levelpath after successfully building Scout RFP-a procurement platform acquired by Workday for $540 million in 2019. Their experience working at Workday over three years revealed persistent inefficiencies in procurement processes that inspired them to create a mobile-first platform emphasizing superior user experience.

AI-Powered Features Embedded from Launch

The timing of Levelpath’s debut shortly after ChatGPT’s release enabled it to integrate advanced artificial intelligence capabilities from day one. These include interpreting unstructured contract data and recommending cost-saving alternatives for goods and services.Today, prominent organizations such as Ace Hardware, Amgen, Coupang, and SiriusXM utilize Levelpath’s software to optimize purchasing decisions efficiently.

Tackling an Outdated Market with Modern Solutions

The fresh investment underscores confidence in Levelpath’s ability to disrupt a market long dominated by legacy platforms like Coupa and Ariba-systems often criticized for clunky interfaces that drive employees toward unauthorized spending via corporate credit cards. This “rogue” expenditure frequently leads companies to miss out on negotiated discounts or volume pricing advantages while inflating costs.

“Procurement typically ranks as the second-largest expense category after payroll,” explains Neeraj Agrawal of Battery Ventures. “Enhancing software tools here can unlock considerable savings.”

The Expanding Global Procurement Software Market

The worldwide procurement software sector was valued near $7.8 billion in 2024 amid steady annual growth fueled by enterprises embracing digital change strategies across industries.

Navigating Competition with Experienced Leadership at helm

Though still emerging compared with established players like Zip-valued around $2.5 billion last year-and Oro Labs backed by Felicis Ventures,Levelpath benefits from seasoned leadership: Agrawal previously led Battery’s investment into Coupa and now serves on Levelpath’s board.

Coupa stands as a prime example of success within this domain; it went public through an IPO in 2016 before being taken private several years later for approximately $8 billion-a clear indicator of how impactful effective procurement solutions can be when executed properly.

A legacy Built on Trustworthiness and Results

“The founders have earned admiration not only due to their product expertise but also because of their integrity,” remarks Agrawal about Garber and Yakubovich. “Clients eagerly collaborate with them knowing thay consistently deliver innovative solutions.”

A Partnership Rooted in Shared History Spanning Two Decades

The co-founders’ bond traces back more than twenty years-to high school days together in ohio-where they connected over shared immigrant backgrounds from the former Soviet Union alongside entrepreneurial ambitions that continue today through Levelpath’s mission: crafting procurement software intuitive enough that users prefer engaging rather than avoiding it altogether.

The Real-World Benefits of Smarter Procurement Technology

Beyond being viewed merely as administrative tasks within organizations,procurement delivers tangible financial gains driven by improved technology adoption.