Homegrown B2B SaaS procurement platform Penny Software has raised an undisclosed amount in a pre-series A funding led by Dubai-based venture capital firm Iliad Partners, according to a statement by the company yesterday. The funding round also saw GSI Ventures and US-based Knollwood Investment Advisory participate alongside existing investors, including Dallah Investment, Hambro Perks Oryx Fund, Class 5 Global, Altuwajiri family fund, and strategic angel investors.

What does Penny Software do? The cloud-based source-to-pay platform digitizes and oversees procurement cycles from request to approvals. It aims to streamline and centralize all procurement requirements through handling sourcing, comparing quotes, issuing purchase orders, and facilitating payments. Penny was founded in 2020

Where are the funds going: The fresh funds will be channeled towards Penny’s plans for regional and global expansion, it said, without providing further details on target countries. It said an investment by Iliad Partners — the first by the VC firm in Saudi — will see it “strategically positioned to capture significant growth” in the global procurement software market.

Penny expects some USD 1 bn in gross transaction value to be managed on its platform this year.

What they said: "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,” Penny Software CEO and Co-Founder Iyad Aldalooj said.

ICYMI- Penny Software raised USD 5 mn in 2022 in a seed round that was led by US-based Outliers Venture Capital, with investments from Shorooq Partners, Hambro Perks ORYX Fund, Class 5 Global, and strategic angel investors. The funds were directed towards the company’s global expansion plans.

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