Riyadh-based B2B SaaS procurement platform Penny Software has raised undisclosed amount of funding in a pre-Series A round, it announced today.
The round was led by Iliad Partners and joined by GSI, US-based Knollwood Investments, and existing investors, including Dallah Investment, Hambro Perks Oryx Fund, Class 5 Global, and Altuwajiri family fund. A few ‘strategic angel investors’ also participated in the deal.
Founded in 2020 by Iyad Aldalooj, Majid Aldalooj, and Mohamad Ibrahim, Penny is a cloud-based procurement management software that helps businesses digitize and manage their entire procurement cycle from request to payment and everything in between.
Penny also runs a B2B marketplace, making it easier for businesses to procure the different products from trusted vendors.
In addition to serving businesses looking to manage their procurement and vendors looking to sell to businesses, Penny also offers a procurement-as-a-service platform for distributors and resellers.
The startup claims to be on its way to manage over $1 million in gross transaction value and serve thousands of companies globally. It is important to note that the gross transaction value doesn’t neccessarily translate into revenue for a procurement software startup as they normally make money by charging their users a monthly fee.
Penny sells its software for a monthly fee of $533 (SAR 1,999), billed on annual basis.
The Saudi SaaS startup plans to use the latest funds to fuel its regional and international expansion, “With a robust client base, Penny Software is poised to meet and exceed the demands of medium to large corporations across a broad spectrum of industries,” noted a statement by the firm.
Iyad Aldalooj, the co-founder and CEO of Penny Software, said, “This investment from Iliad Partners, alongside the continued support from our existing and new investors, represents a significant vote of confidence in Penny Software’s vision and our team’s ability to execute.”
“We are excited to leverage this partnership to scale our operations, enhance our product offering, and solidify our position as a leader in the procurement software industry. The future of procurement is here, and Penny Software is at the forefront of this transformation,” he added.
Christos Mastoras, Founder & Managing Partner of Iliad Partners, said, “We are excited to partner with the founders of Penny Software and support them in their next stage of growth. With an innovative product digitizing a key business process for corporates across sectors, they are well-positioned to expand across the region and beyond.”
“Saudi Arabia is an economy that is undergoing a major transformation in which technology is playing a key role. This is our first investment in the Kingdom and we plan to invest a significant portion of our fund in this market, supporting strong founders on their journey from the Pre-Series A stage and onwards,” he added.
Penny Software previously raised $5 million in a seed round led by Outliers Venture Capital in 2022.
