Saudi’s Penny Raises $1.35 Million Seed for Its Procurement And Spending Management Softwarezubair Naeem Paracha

Saudi’s Penny Raises .35 Million Seed for Its Procurement And Spending Management Softwarezubair Naeem Paracha

Riyadh-based procurement SaaS startup Penny has raised $1.35 million in a seed round from Wamda, Class 5 Global, Outliers VC, Plug and Play, and some strategic angel investors, it announced in a statement to MENAbytes today. According to our data, it is the largest seed round raised by a SaaS startup in Saudi.

Founded earlier this year by Iyad Aldalooj, Majid Aldalooj, and Mohamad Ibrahim, Penny’s online software helps businesses of all sizes digitize their procurement and spending activities. The startup is also building a private B2B marketplace for its clients to make it easy for them to source and procure products from different vendors. When it launches, Penny’s marketplace will be the largest of its kind in Saudi with over 100,000 SKUs from 250 brands, claims the startup.

Iyad Aldalooj, the co-founder and CEO of Penny, who was previously with Careem serving the company as General Manager and Marketing Director for about three years told MENAbytes that there’s hardly anything in the market that consolidates procurement and that is what they’re trying to do, “Penny consolidates all types of spending, making it easy for businesses to track every single penny going out. It puts companies in full control of their spending and brings order to procurement. We’re starting with Saudi but what we’re building is a global product. It is about time the region produces a product that’s used across the world.”

The statement by Penny citing data by market intelligence firm International Data Corporation (IDC) notes that the global procurement software market is growing at a CAGR of 9.1 percent, and expected to reach $7.3 billion by 2022.

Penny, for now, offers its solution to enterprise clients but it is also in the process of building a freemium version for SMEs that is expected to be launched later this year. The startup is currently in conversations with multiple large enterprise clients who are considering using its solution to completely digitize all the procurement processes.

The startup plans to use the investment to continue building its product and expand the team.

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