TL;DR:
- Levelpath raised $55 million Series B led by Battery Ventures.
- The startup is founded by Scout RFP’s ex-founders, sold to Workday for $540M.
- Levelpath integrates AI to streamline procurement with clients like Amgen and SiriusXM.
- It aims to quadruple revenue in 2025, disrupting legacy players like Coupa and Ariba.
- Benchmark and Redpoint joined the round, continuing their early backing.
- Battery’s Neeraj Agrawal has joined the board after previously backing Coupa.
- The company is positioned for scale in the $7.3B procurement software market.
- Focus is on user-friendly, mobile-first solutions to curb “rogue” spending.
Levelpath Secures $55M to Disrupt Clunky Procurement Software
Procurement software startup Levelpath has secured $55 million in Series B funding, reinforcing investor confidence in its vision to modernize how companies manage procurement. The round was led by Battery Ventures, with participation from returning investors Benchmark and Redpoint Ventures.
Founded by Stan Garber and Alex Yakubovich, the duo behind Scout RFP — which was acquired by Workday for $540 million — Levelpath emerged from the duo’s post-acquisition insight into just how broken legacy procurement systems remain.
Levelpath’s Growth Trajectory
| Metric | Detail | Source |
| Series B Raised | $55 million | TechCrunch |
| 2023 Market Size | $7.3 billion | Fortune Business Insights |
| Scout RFP Exit | $540 million (Workday, 2019) | BusinessWire |
| Top Clients | Amgen, Coupang, SiriusXM, Ace Hardware | TechCrunch |
| Key Investor | Neeraj Agrawal (Battery Ventures) | Battery Ventures |
Why Procurement Is Ripe for AI-Led Disruption
Procurement is typically the second-largest spend category after payroll in most organizations, yet many still rely on systems like Coupa or SAP Ariba, which are notoriously hard to use. This leads to “rogue” purchases outside official platforms, missing out on bulk discounts and centralized control.
Levelpath’s edge lies in being a mobile-first, AI-integrated solution. Its tools analyze unstructured contract data and suggest lower-cost alternatives for services and goods.
Its rollout has already attracted a blue-chip client list including Amgen, SiriusXM, Coupang, and Ace Hardware.
Serial Entrepreneurs With a Proven Playbook
Garber and Yakubovich bring two decades of partnership to the table. As founders of Scout RFP, they successfully exited to Workday, spending three years there before launching Levelpath. Their working relationship started back in high school in Ohio, rooted in shared immigrant backgrounds and a passion for entrepreneurship.
Now, they aim to build a product people enjoy using, unlike most current procurement solutions that employees try to avoid.
Investor Confidence: Battery’s Agrawal Joins the Board
Neeraj Agrawal, general partner at Battery Ventures, led the round and joined Levelpath’s board. His prior success with Coupa — which IPO’d in 2016 and was later taken private by Thoma Bravo for $8 billion — makes his backing a meaningful endorsement.
Agrawal emphasized the founders’ “reputation for delivering” and the product’s ability to generate real ROI by reducing procurement inefficiencies. “It makes the cash register ring, because of these savings,” he told TechCrunch.
The Competitive Landscape: Zip, Oro Labs, and Legacy Giants
Levelpath faces competition from modern startups like Zip, last valued at $2.2 billion, and Oro Labs, backed by Felicis. But legacy players like Ariba and Coupa still hold market share, albeit increasingly under threat from new, user-friendly alternatives.
This funding gives Levelpath a shot at scaling fast — especially with AI integrated from the ground up, not bolted on later.
What’s Next for Levelpath?
Levelpath plans to quadruple its revenue in 2025, double down on AI features, and expand its product’s reach beyond the Fortune 500. Its investors believe that if any team can disrupt this overlooked but essential enterprise vertical, it’s these founders.
