Levelpath, a groundbreaking procurement software startup born from the minds behind Scout RFP, has just secured $55 million in Series B funding, spearheaded by Battery Ventures. This significant investment signals confidence in Levelpath’s ambitious goal: to quadruple its revenue within this year alone. The funding round also saw participation from key investors including Benchmark, who led Levelpath’s initial $14.5 million seed round, and Redpoint, who backed the company’s $30 million Series A round in 2023. The story of Levelpath is intrinsically linked to the success of its founders, Stan Garber and Alex Yakubovich. These two entrepreneurs, previously at Workday, identified and addressed persistent procurement challenges, ultimately leading to the creation of this innovative platform. Their previous startup, Scout RFP, was acquired by Workday for a staggering $540 million in 2019, demonstrating their ability to build successful businesses. During their three years at Workday, Yakubovich and Garber witnessed firsthand the inefficiencies and frustrations associated with traditional procurement processes, motivating them to develop a mobile-first, user-friendly solution. Levelpath’s timing couldn’t have been more fortuitous, coinciding with the debut of ChatGPT, allowing the company to seamlessly integrate AI capabilities from the outset. This strategic integration enables Levelpath to intelligently review unstructured data within contracts, identifying opportunities to recommend more cost-effective, comparable products and services. This technological advantage, coupled with a focus on user experience, is driving rapid adoption among a growing roster of impressive clients, including industry giants like Ace Hardware, Amgen, Coupang, and SiriusXM.

The investment isn’t just about growth; it’s a validation of Levelpath’s potential to disrupt a market long dominated by legacy procurement software providers like Coupa and Ariba. These outdated systems are notorious for their clunkiness, often leading employees to circumvent official processes – a phenomenon known as ‘rogue’ spending. This frequently results in overspending and missed opportunities for bulk discounts, a problem that Battery Ventures general partner Neeraj Agarwal is keenly aware of. Procurement represents companies’ second-largest expenditure after payroll, making software improvements exceptionally valuable. The procurement software market itself is a substantial one, currently valued at $7.3 billion annually according to Fortune Business Insights. While Levelpath may be a newer entrant compared to established players like Zip ($2.2 billion last fall) and Oro Labs (backed by Felicis), the company possesses several key ingredients for success. Neeraj Agarwal’s involvement, having led Battery’s Series B investment into Coupa and now serving on Levelpath’s board, is particularly noteworthy. Agarwal’s understanding of building successful businesses in this category, combined with his admiration for Levelpath’s technology and founders, is a strong endorsement. "They have such a strong reputation for delivering product, being good people to work with, and doing what they say they’re going to do," Agrawal told TechCrunch. "Customers want to work with them and help them build this next-generation product."

The founding duo, Stan Garber and Alex Yakubovich, have a long and successful history working together. Their friendship began in high school in Ohio, forged through shared heritage as immigrants from the former Soviet Union and a mutual passion for entrepreneurship. Together, they’ve spent over 20 years building businesses, and their stated goal with Levelpath is to help customers enjoy, rather than avoid, using procurement software. This shift in perspective – from viewing procurement as a burden to seeing it as an opportunity for savings – is central to Levelpath’s mission. While procurement may seem like a mundane business function, it offers a direct and significant return on investment by helping companies save money. "It makes the cash register ring because of these savings," Agrawal emphasized. Levelpath’s innovative approach, coupled with the backing of experienced investors and the dedication of its founders, positions the company for continued growth and success in the dynamic world of procurement software."