Levelpath, a procurement software startup founded by Stan Garber and Alex Yakubovich, has secured $55 million in Series B funding, with Battery Ventures leading the round as the company targets a fourfold increase in revenue this year.
Notable existing investors Benchmark and Redpoint also joined the round, continuing their support following Benchmark’s involvement in Levelpath’s $14.5 million seed round and Redpoint’s backing of the $30 million Series A round announced in 2023.
Previously, Garber and Yakubovich built and led Scout RFP, which Workday acquired for $540 million in 2019. During their subsequent tenure at Workday, the two founders observed persistent problems within procurement processes, prompting them to create a new mobile-first, user-friendly solution with Levelpath.
Launching concurrently with the rise of ChatGPT gave Levelpath a strategic advantage from day one, allowing the company to deeply integrate artificial intelligence capabilities into its software. The platform leverages AI to efficiently analyze unstructured data from contracts and routinely offers alternative products and services at better prices. Levelpath’s rapidly growing roster of customers already includes major brands such as Ace Hardware, Amgen, Coupang, and SiriusXM.
Battery Ventures’ general partner, Neeraj Agrawal, emphasized the significance of this investment, pointing to Levelpath’s potential to disrupt a procurement software landscape currently dominated by legacy companies like Coupa and Ariba. According to Agrawal, traditional players’ complicated interfaces often push employees to circumvent approved procurement channels, leading to costly inefficiencies, missed savings, and fragmented data. Given that procurement constitutes the second-largest expense for many businesses—after payroll—enhancements in procurement software deliver direct and measurable return on investment. A recent study estimated procurement software to be a $7.3 billion annual market globally.
Levelpath faces competition from well-established startups in the procurement sector, including Zip, valued at $2.2 billion in its latest funding round, and Oro Labs, which counts Felicis Ventures among its backers. Despite being comparatively newer and smaller, Levelpath contains core ingredients needed to thrive, including robust financial backing from experienced venture leaders. Notably, Agrawal himself previously led Battery’s Series B investment in Coupa, now an established success story—it IPO’d in 2016 and later went private in an $8 billion acquisition by private equity firm Thoma Bravo.
Acknowledging the founders’ strong track record, Agrawal said customers are eager to adopt Levelpath’s solution, mainly because Garber and Yakubovich have repeatedly demonstrated their ability to deliver valuable products and fulfill their promises. The partners first met in high school in Ohio and bonded over their experiences as immigrants from the former Soviet Union and their passion for entrepreneurship. Having worked together closely for over two decades, they express deep enthusiasm in reshaping procurement into an enjoyable rather than frustrating experience for business users.
Agrawal summarized the value proposition clearly, saying that better procurement processes directly translate into significant savings: “It makes the cash register ring because of these savings.”
