Riyadh: Penny Software, the Saudi Arabia-based software company for procurement management and B2B marketplace has raised $1.35M in a 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 Mohammed 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.
Penny CEO and Co-Founder Iyad Aldalooj said: “The post-COVID-19 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, while the B2B online marketplaces will account for about 30% of all worldwide online B2B sales by 2024.
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 Mohammed 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.