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§ Private Profile · Riyadh, Saudi Arabia
Penny Software is a technology company.
Penny Software delivers an e-procurement and digital Source-to-Pay platform, digitizing the entire procurement lifecycle from RFQs to payments. The system streamlines orders, approvals, and financial management, including budget oversight. With an AI-driven, modular architecture, it offers autonomous and core sourcing capabilities. This platform enhances governance and optimizes value for enterprises by consolidating complex procurement operations.
Iyad Aldalooj, Majid Aldalooj, Mohamad Ibrahim, and Hemadri Seelamsetty founded Penny Software in 2020. Their insight stemmed from observing pervasive inefficiencies in traditional procurement. Recognizing the critical need for businesses to digitize and automate fragmented procure-to-pay processes, they developed an integrated solution. This platform offers enterprises improved control, transparency, and operational efficiency.
Penny Software's platform serves modern enterprises focused on optimizing procurement and achieving cost savings. It is adopted by departments like procurement, finance, and supply chain to manage complex purchasing within a unified system. The company aims to simplify global procurement, empowering businesses to gain proactive spend control and operational efficiency by centralizing all purchasing functions.
Penny Software has raised $11.0M across 2 funding rounds.
Penny Software has raised $11.0M in total across 2 funding rounds.
Penny Software has raised $11.0M in total across 2 funding rounds.
Penny Software's investors include 9Yards Capital, Accel, Emergence Capital, Outliers Venture Capital, Class 5 Global, Hambro Perks, Shorooq Partners, Wamda.
Penny Software has raised $11.0M across 2 funding rounds. Most recently, it raised $6.0M Seed in April 2024.
| Date | Round | Lead Investors | Other Investors | Status |
|---|---|---|---|---|
| Apr 1, 2024 | $6M Seed | — | 9Yards Capital, Accel, Emergence Capital | Announced |
| Jan 18, 2022 | $5M Seed | Outliers Venture Capital | Class 5 Global, Hambro Perks, Shorooq Partners, Wamda | Announced |
Penny Software is a Saudi-based technology company founded in 2020 that builds a cloud-based Source-to-Pay (S2P) procurement platform.[1][2][3] It serves modern enterprises, businesses, and government entities by automating and digitizing the full procurement cycle—from sourcing and RFQs to purchase orders, payments, and spend management—solving inefficiencies like email-based processes, lost requests, and poor visibility into spending.[1][2][4][5] The platform offers AI-driven tools, B2B e-commerce features, and a marketplace for suppliers, enabling cost savings, compliance, budget control, and quick implementation with dedicated customer success support.[2][4] With $6.35M raised across seed rounds and operations in Riyadh (headquarters) and Dammam, Penny has gained traction among leading global brands, particularly in the Middle East, focusing on GovTech, public sector, and AI-enhanced procurement.[1][3][6]
Penny Software emerged in 2020 amid Saudi Arabia's push for digital transformation, particularly Vision 2030's emphasis on efficient public and private sector operations.[1][3] Founded in Riyadh with additional presence in Dammam, the company quickly raised $6.35M in seed funding (including a recent $5M round), reflecting early investor confidence in its potential to modernize procurement in a region with growing B2B digital needs.[1][6] While specific founders are not detailed in available sources, the leadership includes a CEO and Managing Director for North America, indicating an early focus on scalable, region-specific innovation like WhatsApp/Email integrations for RFQs and POs tailored to local workflows.[4][6] Pivotal early traction came from its modular, customizable design, which addressed pain points in fragmented procurement, leading to partnerships like Viva Technology and adoption by enterprises seeking compliance and efficiency.[2][3]
Penny stands out in the crowded procurement software market through targeted features for emerging markets like the Middle East:
These elements position Penny ahead of competitors like Levelpath or Keelvar by emphasizing regional adaptability and ease-of-use over pure tactical optimization.[1]
Penny rides the global Source-to-Pay digitization wave, amplified in the Middle East by Saudi Vision 2030's GovTech investments and post-pandemic supply chain demands for transparency.[3] Its timing aligns with rising AI adoption in procurement—projected to save enterprises 10-20% on spend—and the shift to cloud SaaS in emerging markets, where legacy email/Excel processes persist.[1][2] Market forces like regulatory compliance needs, B2B marketplace growth, and ERP integrations favor Penny, especially in KSA/Bahrain where competitors like Procural operate but lack its AI depth.[1][3] By enabling smarter decisions for businesses/governments, Penny influences the ecosystem, fostering supplier networks via its marketplace and supporting regional startups in cloud infrastructure and AI.[2][4]
Penny is poised for accelerated growth through geographic expansion (e.g., North America via its MD) and deeper AI enhancements, potentially capturing more GovTech contracts amid Saudi's $100B+ digital economy push.[3][6] Trends like autonomous procurement and embedded marketplaces will shape its path, with risks tied to execution in competitive funding environments (Mosaic Score recently dipped).[1] Its influence could evolve from regional disruptor to global player, consolidating procurement needs as enterprises prioritize efficiency—building on its seed momentum to redefine B2B spending in high-growth markets.[1][2]