Levelpath Secures $55M in Funding to Revolutionize Next-Gen Procurement Platforms
Levelpath, a procurement software company founded by Stan Garber and Alex Yakubovich, has successfully secured $55 million in Series B funding, primarily led by Battery Ventures. This new funding aims to help Levelpath quadruple its revenue in the coming year. Existing investors, including Benchmark and Redpoint, also participated in this round.
The company’s founders previously established Scout RFP, which was acquired by Workday for $540 million in 2019. While working at Workday, Yakubovich and Garber recognized enduring challenges in the procurement space, inspiring them to create a mobile-first platform that simplifies purchasing processes.
Launching shortly after the debut of ChatGPT, Levelpath has incorporated AI functionalities from its start, such as analyzing unstructured data in contracts and suggesting cost-effective alternatives. Notable clients include Ace Hardware, Amgen, Coupang, and SiriusXM.
The recent funding reflects confidence in Levelpath’s rapid growth and its ability to disrupt a sector largely ruled by legacy systems like Coupa and Ariba. These outdated vendors have led to inefficiencies and increased spending due to employee tendencies to bypass official procurement channels.
Aggressive improvements in procurement software are essential, as procurement costs are typically the second-largest expense for companies after salaries. According to Fortune Business Insights, the market for procurement software was valued at $7.3 billion in 2023.
Although Levelpath is a newer and less established player compared to competitors like Zip and Oro Labs, it possesses a strong foundation, bolstered by Agrawal’s prior experience with Coupa.
Agrawal commended Levelpath’s technology and its founders, noting their stellar reputation for delivering products successfully and maintaining customer satisfaction.
The friendship between Yakubovich and Garber dates back to their high school days in Ohio, where they bonded over their immigrant backgrounds and shared entrepreneurial interests. Together for over two decades, they aim to transform procurement software into a tool that customers appreciate rather than avoid.
Ultimately, while procurement may seem an unremarkable function, it offers significant ROI by facilitating cost savings for companies, thus ensuring strong financial performance.
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