At the helm of procurement software startup Levelpath, founders of Scout RFP, Stan Garber, and Alex Yakubovich have scored a big win with a stunning $55 million in Series B financing. Battery Ventures led the charge, placing a bold bet on the company's plans to quadruple its revenue this year.

Also joining the party were our old friends, existing investors like Benchmark, who initially bankrolled Levelpath to the tune of $14.5 million in the seed round, and Redpoint, the top investor in the $30 million Series A round we announced back in 2023.

Garber and Yakubovich (that debonair duo on the right), previously struck gold with Scout RFP, a startup snapped up by Workday for a cool $540 million in 2019. During their three-year tenure at Workday, they identified stubborn procurement problems that spurred them to create a mobile-based, super user-friendly platform.

The stars aligned perfectly for Levelpath, launching just as the AI-powered ChatGPT was making its debut. This not only allowed the startup to incorporate AI expertise from the very beginning but also enabled them to review complex data in contracts and make cost-effective suggestions for similar products and services. Levelpath's impressive roster of clients now includes household names such as Ace Hardware, Amgen, Coupang, and SiriusXM.

This latest funding round confirms belief in Levelpath's meteoric growth and its power to challenge the monopoly of old-school heavyweights. For years, procurement software has been in the iron grip of antiquated vendors like Coupa and Ariba. Their unwieldy systems often drive employees to detour the official processes, leading to careless corporate credit card spending and wandering away from bargain bulk discounts, says Battery Ventures' executive, Neeraj Agrawal.

Indeed, procurement sits high on the expenditure list for businesses, second only to payroll, making an efficient software solution a worthwhile investment. As things stood in 2023, the procurement software market was estimating a turnover of $7.3 billion annually according to Fortune Business Insights.

Even though Levelpath is still the new kid on the block, it seems to have all the necessary tools in its arsenal. Indeed, Agrawal, who spearheaded Battery’s Series B investment into Coupa, has officially joined the team at Levelpath.

Coupa, certainly left its mark in the world of procurement, transitioning from a victorious IPO in 2016 to an $8 billion private enterprise snapped up by PE firm Thoma Bravo a few years later.

Likewise, Agrawal, a man who knows a thing or two about crafting success in this sector, is wholly impressed by Levelpath’s technology and its creators. He dubbed them as reliable, trustworthy and strong on delivery. According to Agrawal, customers are queuing up to collaborate with them and contribute to the making of this path-breaking product.

Our protagonists, Yakubovich and Garber, have been thick as thieves since their school days in Ohio. Their shared stories of migration from the ex-Soviet Union and a common interest in entrepreneurship have kept them together for 20 years and counting, with a shared vision to reinvent procurement software so users look forward to, not dread, using it.

While procurement may typically occupy workspace conversations during lunch breaks, there's a significant direct return on investment potential when it helps businesses save money.

As Agrawal puts it so eloquently, it's all about making the cash register ring out loud and proud from tangible savings.