Venture

Levelpath Secures $55M to Revolutionize Procurement with AI

Cansin Cengiz

30 Jun 2025 — 2 min read

Levelpath Secures $55M to Revolutionize Procurement with AI

Levelpath, a cutting-edge procurement software startup, has successfully raised $55 million in Series B funding, spearheaded by Battery Ventures. This significant investment is set to fuel the company's ambitious goal of quadrupling its revenue this year, signaling strong confidence in its innovative approach to an often-overlooked business function.

The funding round also saw continued participation from existing investors, including Benchmark, which led Levelpath’s $14.5 million seed round, and Redpoint, the lead investor in its $30 million Series A round announced in 2023.

The Visionaries Behind Levelpath

Levelpath was founded by Stan Garber and Alex Yakubovich, a duo with a proven track record in the procurement space. Their previous venture, Scout RFP, was acquired by Workday for $540 million in 2019. During their three-year tenure at Workday, Garber and Yakubovich identified persistent inefficiencies within traditional procurement processes. This firsthand experience motivated them to create a modern, mobile-first, and user-friendly platform designed to overcome these challenges.

AI-Powered Procurement for the Modern Era

Levelpath’s launch coincided perfectly with the debut of ChatGPT, allowing the startup to integrate advanced AI capabilities from its inception. This strategic timing has enabled Levelpath to offer features like reviewing unstructured data in contracts and recommending more cost-effective, similar products and services. The company has quickly attracted a robust client base, including industry giants such as Ace Hardware, Amgen, Coupang, and SiriusXM.

The investment underscores a growing belief in Levelpath's potential to disrupt a market traditionally dominated by outdated, cumbersome systems from legacy players like Coupa and Ariba. These older systems often lead to "rogue" spending—employees bypassing official processes and using corporate credit cards, resulting in overspending and missed opportunities for bulk discounts. Neeraj Agarwal, General Partner at Battery Ventures, highlights that procurement is typically a company’s second-largest expenditure after payroll, making software improvements in this area incredibly valuable.

The global procurement software market was valued at $7.3 billion annually in 2023, indicating a substantial opportunity for innovation. While Levelpath is a newer entrant compared to competitors like Zip and Oro Labs, its strong foundation, innovative technology, and experienced leadership, including Agarwal joining its board, position it for significant growth.

A Partnership Built on Experience

Garber and Yakubovich’s partnership dates back to their high school days, bonding over shared heritage and an entrepreneurial spirit. With over 20 years of working together, their shared goal is to transform procurement from a chore into an enjoyable and efficient process for businesses. As Agarwal aptly puts it, “It makes the cash register ring because of these savings,” emphasizing the direct and significant return on investment that efficient procurement delivers.