According to Bain & Co. and Proxima, external supplier costs account for 75% of Fortune 500 spending and 65% of revenue, meaning even small improvements to procurement systems can unlock double-digit gains in EBITDA.
Levelpath, a San Francisco-based startup, is taking aim at that inefficiency with an AI-native platform. The company just announced it had raised $55 million in Series B funding led by Battery Ventures, bringing its total funding to over $100 million in just three years. It also introduced a suite of autonomous AI Agents that perform procurement tasks independently, from onboarding suppliers to launching sourcing events.
The new capital and product release mark a critical inflection point for Levelpath, which now positions itself as the AI-native alternative to legacy vendors like Coupa and SAP Ariba.
A Procurement Reboot
Co-founders Alex Yakubovich and Stan Garber know the space well. Their last company, Scout RFP, was acquired by Workday in 2019 for $540 million. While working inside Workday post-acquisition, they were struck by a recurring challenge: despite layers of automation and policies, employees often struggled to simply figure out how to buy something.
“There’s a highly effective procurement team in place, policies on the intranet, a catalog of approved suppliers, but no easy way for a first-timer to know where to start,” Garber said in a 2023 interview with Diginomics. “Even procurement folks don’t always know the process.”
Launched in 2022, Levelpath began with a mobile-first application called Pathfinder that guides users through purchasing processes by asking a series of dynamic questions. From there, the team layered in workflow automation, integrations with tools like Slack and Coupa, and ultimately a proprietary reasoning engine called Hyperbridge that enables context-aware automation.
The result is a single interface that lets users type in a request like “I need to buy software,” and the system navigates the complexity: approvals, supplier rules, budget checks, behind the scenes.
Hyperbridge powers all of Levelpath’s core capabilities. It processes enterprise data, connects legal and finance workflows, and chooses the most suitable large language model to respond in real time. According to the company, this architectural choice, building for AI from day one rather than retrofitting, gives it an edge over incumbents built in an earlier era of software.
From Assistant to Agent
The most notable development from the Series B announcement is the rollout of Levelpath’s AI Agents. These agents proactively complete tasks: launching sourcing events, handling risk assessments, and autonomously managing supplier onboarding.
“Our AI Agents are not just smart assistants. They take initiative, connect data, and act in real time,” said Yakubovich.
This shift from reactive support to autonomous execution aligns with broader trends in enterprise AI. Companies increasingly want systems that can act. Levelpath’s preconfigured agents are meant to plug into enterprise environments out of the box, reducing dependency on IT support and accelerating deployment.
Customer use cases appear to validate the approach. TreeHouse Foods, for example, reportedly achieved over 200% ROI in six weeks after replacing manual intake and spreadsheet routing with Levelpath’s intelligent automation.
Backing from the Playbook Veterans
Battery Ventures general partner Neeraj Agrawal, who joins Levelpath’s board as part of the funding round, is a notable addition. Agrawal previously led Battery’s investment in Coupa and coined the T2D3 growth framework used widely across SaaS startups. Coupa, which IPO’d in 2016 and was later acquired for $8 billion, is one of the most successful procurement software companies of the last decade.
“Levelpath represents the future of enterprise procurement: intelligent, automated, and strategically aligned with business objectives,” said Agrawal. “They’ve built remarkable technology that delivers demonstrable value to some of the world’s largest companies.”
Benchmark, Redpoint, 01 Advisors, NewView Capital, and World Innovation Lab also returned for this round, reinforcing investor confidence in both the market and the team.
While Levelpath is still a newer entrant in the space, it’s already competing with fast-growing peers like Zip (valued at $2.2 billion) and Oro Labs, as well as legacy incumbents. But the co-founders’ track record and their emphasis on AI-native architecture appear to be resonating. Customers now include SiriusXM, Ace Hardware, Amgen, Coupang, and Fortrea.
Levelpath’s vision is not just to improve procurement workflows but to centralize supplier intelligence. In the future, Garber envisions a platform where employees can access a Salesforce-like dashboard for suppliers: viewing performance, contracts, and risk data in one place. This is currently a blind spot in many organizations, where supplier data is scattered across systems and departments.
The company is now focused on expanding its product capabilities with upcoming enhancements to its Pipeline and AI Front Door features. Pipeline provides real-time visibility into procurement projects, while AI Front Door allows employees to request purchases through natural language, guided by organizational policies and approvals.
