• Saudi Arabia-based SaaS provider Penny Software has raised a pre-Series A funding round for an undisclosed value, from Iliad Partners, joined by GSI and US-based Knollwood Investments, along with existing investors, including Dallah Investment, Hambro Perks Oryx Fund, Class 5 Global, Altuwajiri family fund, and strategic angel investors.
• Founded in 2020 by Iyad Aldalooj, Majid Aldalooj, and Mohamad Ibrahim, Penny Software is a B2B SaaS procurement startup that digitises the entire source-to-pay process, enhancing spend efficiency, governance, and compliance.
• The new capital infusion will fuel Penny’s ambition for regional and global expansion.

• In 2021, Wamda participated in Penny’s $5 million Seed round, which was led by Outliers Venture Capital with participation from Shorooq Partners, Hambro Perks ORYX Fund, Class 5 Global, and strategic angel investors.

Press release: 

Penny Software, a leading Saudi B2B SaaS procurement startup, is thrilled to announce the successful completion of its Pre-Series A funding round, with significant investment from Iliad Partners, joined by GSI and US-based Knollwood Investments. This milestone also sees continued support from our existing investors, including Dallah Investment, Hambro Perks Oryx Fund, Class 5 Global, Altuwajiri family fund, and strategic angel investors. Other shareholders include investors such as Outliers Venture Capital, Shorooq Partners, and Wamda. 

Launched in 2020 by Iyad Aldalooj, Majid Aldalooj, and Mohamad Ibrahim, Penny Software is revolutionising procurement with its enterprise software. Our platform digitises and streamlines the entire source-to-pay process, enhancing spend efficiency, governance, and compliance. Additionally, our marketplace facilitates B2B sourcing across various sectors, proudly contributing to the Saudi Unicorn Program's innovative ecosystem. 

Penny Software is set to manage a gross transaction value of over $1 billion this year, and ease procurement for thousands of companies globally. The fresh capital infusion will fuel our ambitions for regional and global expansion. With a robust client base, Penny Software is poised to meet and exceed the demands of medium- to large corporations across a broad spectrum of industries. Our platform is uniquely designed to address the nuanced requirements of Middle Eastern markets and SMEs, providing a tailored, efficient procurement solution. 

With the global procurement software market burgeoning, Penny Software is strategically positioned to capture significant growth, supported by Iliad Partners' expertise in business development and regional expansion and its extensive regional network and active LP base of leading family groups. This partnership not only marks Iliad Partners' first foray into the Saudi market but also aligns with their commitment to invest substantially in the Kingdom over the next five years. 

Iyad Aldalooj, CEO and co-founder of Penny Software, expressed enthusiasm about the partnership: "This investment from Iliad Partners, alongside the continued support from our existing and new investors, represents a significant vote of confidence in Penny Software's vision and our team's ability to execute. We are excited to leverage this partnership to scale our operations, enhance our product offering, and solidify our position as a leader in the procurement software industry. The future of procurement is here, and Penny Software is at the forefront of this transformation." 

Christos Mastoras, Founder & Managing Partner of Iliad Partners, stated, “We are excited to partner with the founders of Penny Software and support them in their next stage of growth. With an innovative product digitising a key business process for corporations across sectors, they are well-positioned to expand across the region and beyond. Saudi Arabia is an economy that is undergoing a major transformation in which technology is playing a key role. This is our first investment in the Kingdom, and we plan to invest a significant portion of our fund in this market, supporting strong founders on their journey from the Pre-Series A stage and onwards.”