Penny Software raises $5M Seed Funding
A B2B platform with a mission to digitize procurement globally. Penny Software banks on procurement streamlinning in latest $5M funding
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KSA-based procurement enterprise software startup Penny Software has successfully raised $5M in its latest funding round. The SEED round was led by Outliers Venture Capital and recorded participation from Shorooq Partners, Hambro Perks ORYX Fund, Wamda, Class 5 Global, and strategic angel investors.
Founded by Iyad Aldalooj, Majid Aldalooj, Mohamad Ibrahim, and Hemadri Seelamsetty in 2020 Penny set forth to help businesses digitize their procurement from procure-to-pay into one data-driven platform. Procure-to-pay is the streamlining process of buying, invoicing, and paying of goods which adds monetary and timely efficiency to business. The Penny Software provides a procure-to-pay solution and its enterprise software helps companies of all sizes to fully manage their procurement and sourcing activities. In addition, Penny has a B2B marketplace in Saudi with a mission of digitizing the B2B sourcing and procurement for the construction sectors.
Last year was a critical time for the Enterprise Software sector in KSA as Unifonic closes the sector’s and the kingdom’s first Mega Deal. While Unifonic’s Mega Deal accounted for 95% of the total capital deployed in the sector, driving its 1,500+ YoY growth in funding, the sector also continued its 3-year consecutive growth in number of transactions. Despite total Enterprise Software transactions in 2021 remaining relatively shy compared to other industries like E-commerce or FinTech, remarkable rounds were closed by startups supporting people and businesses with seamless solutions including HRTech solutions by Marn.io, PalmHR, and Sabbar, E-retailing and Q-commerce solutions by Zid and Omniful, and even accounting solutions by VoM.
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The global procurement software market is a market with great potential and is currently growing at a CAGR of 9.1%, and expected to reach $7.3Bn in revenue in 2022 according to IDC (IDC), while the B2B online marketplaces will account for about 30% of all worldwide online B2B sales by 2024 (Digital Commerce). Penny COO and Co-Founder Majid Aldalooj, who prior to Penny founded a B2B trading company for construction materials in Saudi Arabia, said: “After years of experience on the supply side of procurement, we have realized that digitization and data-driven procurement is the future of the industry. Nowadays, companies across all industries try to become more efficient in saving their resources.”
Penny Software was recognized by the UK-based ProcureTech and the US-Based Kearny Consulting as one of the top 100 most innovative Procurement solutions globally. Over 4,000 solutions were evaluated across more than 50 key data points. Penny’s CEO and Co-Founder Iyad Aldalooj said: “Enterprise systems don’t have to be dull and boring. At Penny, we are consumerizing the enterprise experience. We designed the system with the end-user in mind. Penny is quick to implement and easy to use. Procurement softwares help organizations save time and money. We believe procurement softwares should be accessible to all businesses.”
Through its newly acquired funding, Penny will be able to solidify its position in the market by further developing its Tech stack and growing its product offerings to service the digitization of procurement. In light of this stellar SEED funding, Penny Co-founder/CTO Mohamad Ibrahim concluded, “We are keen on bringing the B2C simplicity and UI/UX to the B2B experience. We have developed state-of-the-art software that is equipped to handle complex transactions with ease and efficiency.”
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