Procurement software might not be the flashiest segment of enterprise technology, yet it plays a pivotal role in shaping companies’ financial health. Long dominated by cumbersome legacy platforms like Coupa and Ariba, the space has suffered from outdated user experiences, often prompting employees to circumvent formal purchasing protocols. This informal spending—dubbed “rogue spending”—leads to inflated costs and missed opportunities for bulk discounts. Enter Levelpath, a fresh contender poised to disrupt this stagnation with a modern, mobile-first approach, and AI-powered capabilities that align with today’s digital expectations.
Founders with a Proven Track Record and Vision
Levelpath’s story starts with Stan Garber and Alex Yakubovich, a duo whose partnership dates back to their high school days in Ohio. Their shared immigrant background and entrepreneurial spirit have cultivated a bond that has already delivered significant impact in procurement technology through their prior venture, Scout RFP. Acquired by Workday for $540 million, Scout RFP established their credibility and deep understanding of procurement challenges from inside a large enterprise. Their tenure at Workday revealed lingering inefficiencies, fueling their ambition to rethink procurement from the ground up.
Rather than attempting to add incremental improvements to existing clunky systems, Garber and Yakubovich built Levelpath with a user-centric mindset, focusing on simplicity and accessibility. The timing couldn’t be more apt—the launch coincided with the AI revolution ignited by tools like ChatGPT, enabling them to embed artificial intelligence directly into their platform from inception.
AI as a Game-Changer in Spend Management
The integration of AI into Levelpath’s platform isn’t just a buzzword adoption; it fundamentally redefines how procurement teams handle vast amounts of unstructured data in contracts and vendor catalogs. By automatically surfacing cost-saving alternatives and flagging inefficiencies, the tool empowers companies to make smarter, faster purchasing decisions. This addresses one of procurement’s most chronic issues—visibility into spend and supplier options—without burdening users with complex workflows.
The results speak volumes: major companies such as Ace Hardware, Amgen, Coupang, and SiriusXM have already adopted the platform, signaling strong market validation. The platform’s ability to enhance employee engagement with procurement processes is especially notable. By making the experience more intuitive and less of a chore, Levelpath mitigates “rogue” spending behaviors and aligns user incentives with company goals.
Market Momentum and Investor Confidence
The recent $55 million Series B funding round, led by Battery Ventures, is a testament to the confidence investors have in Levelpath’s trajectory. Not only does the funding significantly outpace prior rounds, but it also comes with veteran investor Neeraj Agrawal stepping onto the board. Agrawal’s background is particularly significant—his role in scaling Coupa, a procurement giant that went public in 2016 before being acquired for $8 billion, offers unparalleled domain expertise. His endorsement suggests Levelpath has the strategic and operational foundation to evolve into a major player, despite currently being smaller than competitors like Zip or Oro Labs.
Interestingly, the broader procurement software market, valued at $7.3 billion in 2023, has seen relatively slow product evolution. Modern needs around automation, AI, and mobile usability have remained underserved by incumbents. Levelpath’s ambition to quadruple revenue within a single year underscores not only aggressive growth targets but also a belief that the market is ready for disruption.
The Real Impact of Procurement Innovation
Though procurement may seem like a back-office, mundane function, its significance is underscored by the fact that it often ranks as a company’s second largest expenditure after payroll. Improvements in procurement processes translate directly into cost savings—revenue protection that boosts profitability and operational flexibility. It’s not hyperbole when experts say that better spend management “makes the cash register ring.” Levelpath’s commitment to creating a product customers genuinely want to use contrasts with industry norms, where complexity and frustration are the default.
From my perspective, Levelpath represents the kind of innovation desperately needed in enterprise software—where the focus shifts from simply automating old processes to reimagining user experience and leveraging new technologies like AI to drive tangible business outcomes. Their founders’ deep operational understanding, combined with strong financial backing and thoughtful product design, positions them to unlock substantial value for customers who have long suffered procurement inefficiencies.
While legacy systems linger and dominate mindshare, startups like Levelpath serve as a vital wake-up call: procurement software doesn’t have to be dull or redundant; it can be smart, fast, and enjoyable to use—and that’s where true transformation begins.