Levelpath, an AI-native procurement platform aiming to transform enterprise procurement, has raised over $55 million in its Series B funding round led by Battery Ventures, bringing its total capital raised to $100 million. The investment underlines strong confidence in Levelpath’s vision to reinvent procurement, traditionally one of the largest operational expenses globally after payroll. Key participants in the round also included Redpoint Ventures, Benchmark, 01A, New View Capital, and World Innovation Lab. As part of the round, Neeraj Agrawal, General Partner at Battery Ventures and a seasoned investor in procurement technology, will join Levelpath’s board. Agrawal, known for spearheading Battery’s investment in Coupa—a major player in spend management—highlighted Levelpath’s intelligent and automated approach to procurement that aligns strategically with business objectives.
At the core of Levelpath’s platform is its proprietary Hyperbridge reasoning engine, a breakthrough AI system that unifies procurement workflows by intelligently extracting and connecting data from diverse enterprise sources. Hyperbridge not only enhances operational efficiency but enriches procurement with contextual insights across legal, finance, security, and IT functions, positioning procurement as a strategic business driver rather than a back-office task. This holistic AI design resolves longstanding procurement challenges like complex interfaces, rigid workflows, and user frustration which have hampered modernization efforts in this space.
Levelpath’s AI Agents mark a further leap in autonomous procurement technology, acting proactively on behalf of users to manage sourcing events, supplier onboarding, and risk assessments with minimal IT overhead. These agents leverage context-aware AI to deliver faster, smarter workflows that improve decision-making and operational outcomes from day one, allowing procurement teams to focus on value creation rather than administrative burdens.
Founded in 2022 by Alex Yakubovich and Stan Garber—who previously built Scout RFP, acquired by Workday for $540 million—Levelpath stands out for its AI-native architecture designed from inception, integrating AI capabilities seamlessly rather than retrofitting them onto legacy systems. This approach has helped the company rapidly gain traction with major customers like Ace Hardware, Amgen, Coupang, and SiriusXM. It also enabled Levelpath to launch in tandem with early AI innovations like ChatGPT, facilitating features such as contract data review and cost-saving product recommendations.
The Series B funding will fuel Levelpath’s product development, market expansion, and ecosystem partnerships, including integration within Coupa’s App Marketplace, enhancing its competitive positioning against legacy procurement giants such as Coupa and Ariba. The procurement software market itself, valued at $7.3 billion annually as of 2023, has long been dominated by slow-to-evolve incumbents whose cumbersome systems often drive ‘rogue’ spending—the use of corporate credit cards outside official channels—leading to inefficiencies and missed savings. Battery Ventures perceives Levelpath as a frontrunner in modernising procurement with scalable, delightful AI-powered solutions that can reduce such risks.
Industry research underscores the imperative for such innovation: external supplier costs comprise 75% of Fortune 500 companies’ spending and 65% of revenue, indicating enormous potential for optimisation through advanced procurement technology. Levelpath’s Hyperbridge AI engine was unveiled recently at its customer conference, promising enhanced compliance, risk mitigation, and agility across procurement workflows—elements critical to enterprise success in an era of budget constraints and demand for heightened productivity.
Moreover, Levelpath’s recognition as a Sample Vendor in the 2024 Gartner Hype Cycle for Procurement and Sourcing Solutions, specifically in Intake Management, validates its growing influence in the procurement technology landscape. Gartner highlighted intake management software as vital for improving end-user experiences through streamlined procurement request workflows, reducing noncompliance, and enhancing adoption—areas where Levelpath’s AI-driven platform excels.
As enterprises face increasing pressure to digitise and automate critical functions, Levelpath’s intelligent procurement platform, powered by deeply integrated autonomous AI agents and robust reasoning engines, appears poised to redefine procurement as a competitive advantage rather than a purely administrative function. The company’s monthly AI Masterclass webinar series further reflects its commitment to educating procurement leaders on operationalising AI to enhance efficiency and impact.
With its strong leadership, cutting-edge AI technology, and significant new funding, Levelpath aims to become the definitive platform that modern enterprises rely on to streamline procurement, control costs, and drive strategic value at scale.
Source: Noah Wire Services