Levelpath, a software-as-a-service platform aiming to revolutionize enterprise procurement, has raised $30 million in a Series A funding round. Led by Redpoint with participation from Menlo Ventures, this latest round follows a seed round that raised $14.5 million for the startup, bringing its total funding to $44.5 million.
Co-founders Stan Garber and Alex Yakubovich previously launched Scout RFP, a cloud-based sourcing solution that was acquired by Workday in 2019. While at Workday, Garber and Yakubovich faced challenges in business procurement, experiencing pain points such as difficulty in getting approvals and dealing with time-consuming tasks. These challenges motivated them to start Levelpath.
Enterprise procurement can pose significant challenges for organizations, with a lack of transparency often being a risk to businesses. According to a Harvard Business Review study, about 60% of business leaders express concerns about the lack of transparency between finance and procurement functions. Procurement teams often struggle with data quality and governance, hindering their visibility into procurement processes.
Levelpath aims to address these challenges by providing an enjoyable and easy-to-use platform. The startup’s CEO, Alex Yakubovich, believes that creating an enjoyable experience will maximize adoption and lead to company-wide efficiencies and immediate return on investment.
What sets Levelpath apart is its mobile-first interface, which is described as next-gen and tailored for enterprises managing numerous vendors and employees. The platform’s tools are customizable for each company’s approval workflows, streamlining the procurement process. Additionally, Levelpath leverages AI algorithms to provide actionable insights and reduce vendor redundancy. The startup is also developing an AI model that understands employees’ purchasing and workflow habits, adapting the procurement experience accordingly.
Levelpath already boasts numerous enterprise customers, including Ace Hardware, Qualtrics, and Innovacare. With plans to double its staff next year, the company aims to expand its go-to-market strategy in 2024 while using the latest funding tranche for product development and research.
The funding landscape for procurement software is competitive, with companies like Zip, Ramp, Focal Point, Keelvar, and Tropic vying for market share. However, Levelpath’s focus on the end-user experience and its mission to make procurement delightful sets it apart from the competition.
As companies increasingly seek cost savings and improved procurement processes, investing in procurement software has become more critical than ever. Levelpath aims to meet this demand with its mobile-first platform, providing a seamless and efficient procurement experience for enterprises.
