Penny Software, an esteemed B2B SaaS procurement startup based in Saudi Arabia, proudly announces the closure of its Pre-Series A funding round. This round saw significant contributions from Iliad Partners and was joined by GSI and Knollwood Investments from the USA. Continued backing was provided by longstanding investors including Dallah Investment, Hambro Perks Oryx Fund, Class 5 Global, Altuwajiri family fund, and several strategic angel investors. Additionally, stakeholders include entities such as Outliers Venture Capital, Shorooq Partners, and Wamda.
Founded in 2020 by Iyad Aldalooj, Majid Aldalooj, and Mohamad Ibrahim, Penny Software is transforming procurement through its advanced software solutions. The platform optimizes and automates the complete Source-to-pay cycle, thereby improving spend management, governance, and compliance. The marketplace also supports B2B sourcing across various industries, actively contributing to the innovative ecosystem of the Saudi Unicorn Program.
This year, Penny Software is set to manage a Gross Transaction Value exceeding $1 billion and simplify procurement for thousands of global companies. The new capital will accelerate our plans for both regional and international expansion. With a solid client base, Penny Software is well-equipped to fulfill the requirements of medium to large enterprises across multiple sectors. Our solution is specifically designed to meet the unique needs of the Middle Eastern markets and SMEs, offering a streamlined and effective procurement process.
As the global market for procurement software continues to grow, Penny Software is ideally positioned to seize substantial growth opportunities. This growth is supported by the business development expertise and expansive regional network of Iliad Partners, along with its active LP base consisting of prominent family groups. This collaboration not only marks Iliad Partners’ initial venture into the Saudi market but also demonstrates their commitment to significant investments in the Kingdom for the upcoming five years.
Iyad Aldalooj, CEO and co-founder of Penny Software expressed his excitement about the new partnerships: “The investment from Iliad Partners, together with ongoing support from both new and existing investors, underscores a strong endorsement of Penny Software’s vision and our team’s capability to deliver. We look forward to utilizing this partnership to expand our operations, enhance our product offerings, and affirm our leadership in the procurement software sector. The future of procurement is upon us, and Penny Software is leading the charge.”
Christos Mastoras, Founder & Managing Partner of Iliad Partners, shared his enthusiasm: “We are thrilled to partner with Penny Software’s founders and aid their growth into the next phase. With their cutting-edge product that digitalizes crucial business processes for corporates across various sectors, they are poised for expansion across the region and beyond. As Saudi Arabia’s economy undergoes a significant transformation with technology playing a crucial role, this marks our first investment in the Kingdom. We plan to allocate a considerable portion of our fund to this market, supporting formidable founders from the Pre-Series A stage onward.
