Saudi Arabia-based Penny Software, an AI-powered procurement automation platform, has successfully closed a $5 million funding round. The investment was led by Iliad Partners, with participation from GSI, Knollwood, and existing investors including Dallah Al-Baraka and Hambro Perks Oryx Fund.
Driving Procurement Digitalization
Founded in 2020, Penny Software is on a mission to digitize the region’s massive B2B sourcing and procurement landscape. The company offers a comprehensive Procure-to-Pay software suite and an enterprise marketplace, streamlining operations from sourcing to payment for businesses of all sizes. The platform aims to capture a significant share of the estimated $5 trillion B2B spending market across the MENA region.
Strategic Investment for Regional Growth
The newly secured capital will be instrumental in fueling Penny Software’s strategic expansion plans. The company intends to scale its operations into other GCC countries and key emerging markets, enhancing its footprint beyond Saudi Arabia. A significant portion of the funds will also be dedicated to advancing the platform’s AI capabilities, further automating complex procurement processes for its clients.
“This funding will help us expand our team and enter new markets in the GCC and emerging markets,” said Iyad Aldalooj, CEO and Co-founder of Penny Software. “Procurement is a cornerstone of any business, and we believe that our AI-powered platform can help companies of all sizes to save money, improve efficiency, and make better decisions.”
Christos Mastoras, Founder and Managing Partner of Iliad Partners, commented on the investment, “We are thrilled to be leading Penny’s funding round and to support their mission to revolutionize procurement in the region. We are highly impressed with the company’s founders and team, their vision and unwavering commitment to build a category-defining company in the B2B procurement software space.”
About Penny Software
Penny Software is a B2B technology company headquartered in Riyadh, Saudi Arabia. Co-founded by Iyad Aldalooj, Majid Aldalooj, and Mohamad Ibrahim, the company develops and provides a cloud-based procurement management platform. Its suite of tools helps businesses manage the entire procurement lifecycle, from request to payment, leveraging artificial intelligence to enhance efficiency and reduce costs.
Source: Zawya
