Next-gen procurement platform Levelpath nabs $55M
Levelpath, a startup of the purchasing software founded by the duo behind Scout RFP, has collected $ 55 million in series B financing led by battery ventures, because the company wants to be running into its income this year.
The financing round also saw participation of existing investors, including benchmark, which led the $ 14.5 million seed round of $ 14.5 million, and Redpoint, the main investor announced in the $ 30 million Series A round in 2023.
The startup was founded by Stan Garber and Alex Yakubovich (depicted on the right), whose previous startup, Scout RFP, was taken over by Workday in 2019 for $ 540 million. During their three years, Yakubovich and Garber brought at work on the working day, the two identified persistent adjustment challenges that motivate them to build a mobile first, user, user.
The timing of Levelpath turned out to be outdated; Launching the right as Chatgpt debuted, the startup has made possible to integrate AI options from the start. This includes the assessment of unstructured data in contracts and recommending cheaper, comparable products and services. The company now has ACE Hardware, Amgen, Coupang and SiriusXM as customers.
The investment signals confidence in the rapid growth of Levelpath and the potential to disturb a market that is dominated by old players. Purchasing software has long been checked by outdated suppliers such as Coupa and Ariba, whose awkward systems employees often encourage to circumvent official processes. These “rogue” issues with the help of corporate credit cards often result in too high expenses and missed opportunities for bulk discounts, according to the general partner Neeraj Agarwal of the battery of ventures.
Purchasing even represents the second largest expenses of companies after the payroll, so that software improvements are particularly valuable. The purchasing software market was appreciated on $ 7.3 billion a year According to Fortune Business Insights in 2023.
Although Levelpath is a newer and probably smaller player compared to the most important competitors – including ZIP, worth $ 2.2 billion last fall, and Oro Labs, supported by Felicis – the company seems to have all the right ingredients, including Agrawal, who led Battery’s Series B investment in Coupa.
Coupa naturally grew into one of the most successful purchasing companies in his time. It had a successful IPO in 2016 and eight years later, was taken private by PE company Thoma Bravo for $ 8 billion.
Agrawal, who probably understands what is needed to build a large company in this category, is just impressed by the technology of Levelpath and the founders. “They have such a strong reputation for delivering product, good people are to work with and do what they say they are going to do,” Agrawal told WAN. “Customers want to work with them and help them build this product from the next generation.”
Yakubovich and Garber have been friends since they go to high school in Ohio. They tied their shared heritage as immigrants from the former Soviet Union and a mutual interest in entrepreneurship. The couple has been working together for more than 20 years and their explained goal is to help customers enjoy, instead of preventing purchasing software.
Although purchasing may seem like an everyday business function, it offers a direct and considerable return on investments by helping companies save money.
“It makes the Kassa Register Ring because of these savings,” said Agrawal.
