Penny Software raises $ 1.35M in Seed Round
A B2B platform with a mission to digitize procurement and spending.
RIYADH, Saudi Arabia, September 21, 2020: Penny Software, the Saudi Arabia-based software company for procurement management and B2B marketplace has raised $1.35M in seed round from Wamda, Class 5 Global, Outliers VC, Plug and Play, and strategic angel investors.
Penny was founded by Iyad Aldalooj, Majid Aldalooj, and Mohamad Ibrahim in 2020 to help businesses digitize their procurement from request-to-pay and consolidate all spending into one data-driven platform.
Co-Founder Majid Aldalooj experienced first-hand the fragmentation and disconnect in procurement when he was desperately looking for a solution like Penny while running his previous company which helped procured industrial supplies for contractors.
Penny’s technology provides a procure-to-pay solution and its enterprise software helps companies of all sizes to fully manage their procurement and spending activities. In addition, Penny is building a B2B marketplace in Saudi with a mission of digitizing the B2B sourcing and procurement for the construction sectors. The e-commerce market in Saudi Arabia has grown exponentially, fuelled by the COVID-19 crisis and the Saudi e-commerce user penetration is expected to hit 73% in 2023, one of the highest rates in the world. (EY)
Penny CEO and Co-Founder Iyad Aldalooj said: “The post-COVID reality is reinforcing our mission of digitizing procurement and B2B transactions. Penny puts companies in full control of their spending and brings order to procurement.” Before Penny, Iyad Aldalooj was a General Manager and Marketing Director at Careem in Saudi Arabia.
The global procurement software market is a market with great potential and is currently growing at a CAGR of 9.1%, and expected to reach $7.3 billion by 2022 according to IDC (IDC), while the B2B online marketplaces will account for about 30% of all worldwide online B2B sales by 2024 (Digital Commerce).
Penny COO and Co-Founder Majid Aldalooj, who prior to Penny founded a B2B trading company for construction materials in Saudi Arabia, said: “After years of experience on the supply side of procurement, We have realized that digitization and data-driven procurement is the future of the industry. Nowadays, companies across all industries try to become more efficient in saving their resources.”
Penny CTO and co-founder Mohamad Ibrahim, who previously worked as a Software Engineer at Saudi Aramco, said: “We are keen on bringing the B2C simplicity and UI/UX to the B2B experience. We have developed a state of the art software that is equipped to handle complex transactions with ease and efficiency.”
“As consumer spending continues to drastically move online, we believe the same innovation will happen in procurement. Class 5 is proud to back Penny to simplify trade and spending in the region and beyond,” said Joel Ayala from Class 5 Global.
About Penny Software
Penny Software is a Saudi-based company for Procurement Management and a B2B Marketplace. Penny offers enterprise software that helps businesses of all sizes manage procurement and spending. The Penny B2B marketplace helps connect suppliers with industry buyers in Saudi Arabia. Penny was founded in 2020 by Iyad Aldalooj, Majid Aldalooj, and Mohammed Ibrahim and was funded by venture capitals and angel investors.
Wamda accelerates entrepreneurship ecosystems throughout the Mena region by joining Wamda’s multi-stage, sector-agnostic investment vehicle, focused on partnering with high growth technology or technology-enabled startups, as well as the leading knowledge platform offering integrated programs including thought leadership and research, community development, Wamda’s fellowship program Wamda X, as well as corporate and government advisory services to the various stakeholders of the Mena startup ecosystem.
About Plug and Play
Plug and Play is a global innovation platform. Headquartered in Silicon Valley, we have built accelerator programs, corporate innovation services, and an in-house VC to make technological advancement progress faster than ever before. Since inception in 2006, our programs have expanded worldwide to include a presence in over 30 locations globally, giving startups the necessary resources to succeed in Silicon Valley and beyond. With over 10,000 startups and 400 official corporate partners, we have created the ultimate startup ecosystem in many industries. For more information, visit https://www.plugandplaytechcenter.com/
Outliers is an early-stage venture capital fund backing outlier founders who are building compounding businesses in the US & MENA. Built by founders and operators, Outliers is centered around a founder-driven approach to investing. Leveraging its global reach and operating experience, Outliers support founders who are using technology to change the world.
About Class 5 Global
Class 5 Global is a San Francisco-based venture capital fund focused on emerging markets. Class 5 has a simple mission: to become the go-to capital partner for startups in emerging markets. Trillions of dollars are moving online in these regions, but relatively little capital is mobilized to invest in this phenomenon. Class 5 was founded to take advantage of this opportunity. Our partners’ prior investments include market leaders like Careem, CargoX, Meliuz, Fresha, and many more.