Penny
Riyadh, SA · Founded 2020 · 71 employees on LinkedIn · 11 known investors
Penny is an AI source-to-pay platform that manages the full procurement cycle — sourcing, RFQs, contracts, suppliers, purchase orders, and spend — in one system. It targets enterprise and B2B procurement teams, including multi-location and global organizations, and also offers B2B e-commerce and procurement-as-a-service.
Also known as Penny Software
Founders & leadership
Penny was founded in 2020 by Iyad Aldalooj.
Investors · 11
Also in the syndicate · 4
Company profile
researched Aug 2026Penny (Penny Software) is a Riyadh-based enterprise software company offering a cloud-based, AI-driven source-to-pay platform that manages the procurement cycle from request through payment in a single system. Core functionality covers purchase requests and approvals, RFQs and quotation comparison, purchase orders, supplier data and selection, end-to-end contract management with a centralized versioned repository linked to purchase orders and supplier records, and spend and budget tracking. The platform is positioned as modular and highly customizable, with quick implementation and a dedicated customer success manager.
Alongside the source-to-pay product, Penny sells a B2B e-commerce platform that supports RFQs, offers management and integration between a customer's website and store, plus a procurement-as-a-service offering. AI is embedded across the workflow, including a conversational assistant for creating and querying purchase requests, autonomous sourcing, and AI-assisted supplier negotiation on price, shipping terms and payment conditions.
At founding the company also pursued a B2B marketplace in Saudi Arabia aimed at digitizing sourcing and procurement for the construction sector; at the time of its first seed round the planned marketplace was described as carrying over 100,000 SKUs from 250 brands.
Founding story
Penny was founded in 2020 by Iyad Aldalooj (CEO), Majid Aldalooj (COO), Mohamad Ibrahim (CTO) and Hemadri Seelamsetty (CPO). Majid Aldalooj had previously founded a B2B trading company for construction materials in Saudi Arabia and encountered fragmentation in procurement first-hand while sourcing industrial supplies for contractors; Iyad Aldalooj was previously General Manager and Marketing Director at Careem in Saudi Arabia, and Mohamad Ibrahim was previously a software engineer at Saudi Aramco. The founders set out to digitize procurement from request-to-pay and consolidate spending into one data-driven platform.
Business model
B2B software sold to organizations, complemented by a B2B e-commerce platform product and a procurement-as-a-service offering. Early enterprise deployments involved customization and implementation across the organization, a process the CEO described as potentially taking months, with a freemium tier for SMEs planned as of 2020.
Sale of cloud-based enterprise procurement software, plus platform and service offerings (B2B e-commerce platform and procurement as a service). Specific pricing is not disclosed.
Traction
The company states its software is used in more than 75 countries and cites faster request-to-PO cycle times and cost reduction for customers. A named customer reference, 17Sixty, cited governance, consolidated purchasing, spend visibility and budget control after implementing Penny.
Latest developments
Penny markets a customizable AI source-to-pay platform emphasizing autonomous sourcing, a conversational AI assistant and AI-powered supplier negotiation, alongside its B2B e-commerce platform and procurement-as-a-service offerings, and publishes ongoing procurement content including material focused on Saudi Arabia and the education sector.
▸Full profile — market position, technology, go-to-market, geography, history
Market position
Penny competes with legacy procurement suites, differentiating on simplicity, automation and ease of use. Its 2020 seed was reported by MENAbytes as the largest seed round raised by a Saudi SaaS startup at the time, and in 2022 the company was named among the top 100 most innovative procurement solutions globally by ProcureTech and Kearney.
Consolidation of the full procurement cycle into one system; consumer-grade user experience applied to enterprise software; modular and highly customizable deployment; embedded AI for sourcing and negotiation; faster implementation than legacy systems.
Technology
Cloud-based platform requiring no complex infrastructure, with AI applied across procurement: a conversational AI assistant for purchase requests, autonomous sourcing, and AI-powered supplier negotiation. The product was built in-house, with engineering teams based in Saudi Arabia and India as of 2020.
Go-to-market
Direct enterprise sales driven by demo requests on the company website, supported by a partner program and a content/blog resource library covering procurement, spend management and supplier relationship topics.
Enterprise procurement and finance teams, including multi-location and multi-region organizations; sector examples referenced include education (schools and universities) and construction. Early positioning served enterprise clients, with an SME-oriented freemium version planned in 2020.
Geography
Headquartered in Riyadh, Saudi Arabia, with early engineering presence in Saudi Arabia and India. The company states its software is used in more than 75 countries and is designed for organizations operating across multiple locations and regions.
History
Founded in 2020 in Riyadh, Penny raised a $1.35 million seed round in September 2020 from Wamda, Class 5 Global, Outliers VC, Plug and Play and angel investors, while building enterprise procure-to-pay software and a private B2B marketplace for the Saudi construction sector. In January 2022 it announced a $5 million seed round led by Outliers Venture Capital to support global expansion and was recognized among the ProcureTech/Kearney top 100 procurement solutions. The product has since been repositioned as a customizable AI source-to-pay platform for enterprises, with additional B2B e-commerce platform and procurement-as-a-service lines.
Compiled by commissioned research from 8 cited public sources — announcements, filings, and press listed under research sources below.
Key figures
latest reportedCompany-reported or press-reported figures, each dated to when it was claimed — not independently audited.
Timeline · 3
launches, deals, and filingsPenny Software was recognized by UK-based ProcureTech and US-based Kearney Consulting as one of the top 100 most innovative procurement solutions globally, selected from over 4,000 solutions evaluated across more than 50 data points.
Penny Software raised $5 million in a seed round led by Outliers Venture Capital with participation from Shorooq Partners, Hambro Perks ORYX Fund, Wamda, Class 5 Global and strategic angel investors, announced from Riyadh, Saudi Arabia.
$5M source ↗
Penny announced a $1.35 million seed round from Wamda, Class 5 Global, Outliers VC, Plug and Play and strategic angel investors; MENAbytes described it as the largest seed round raised by a SaaS startup in Saudi Arabia at the time. Proceeds were earmarked for product development and team expansion.
$1.4M source ↗
Dated company events from announcements, filings, and press; legal rows summarize public dockets and regulator releases.
In the news
Profitable Penny Stocks With Stronger Balance Sheets Retail Investors Are Watching - Simply Wall St Newssimplywall.st · Aug 2026▸Research sources · 8
primary sources listed
- Pennypenny.co · web
8 public sources were cited for this profile; the first-party ones are listed here.
Frequently asked questions
- What does Penny do?
- Saudi-based Penny is an AI source-to-pay procurement platform for enterprise sourcing, contracts, suppliers and spend.
- Who founded Penny?
- Penny was founded by Iyad Aldalooj in 2020.
- Who are Penny's investors?
- Penny's investors include Iliad Partners, Outliers VC, Salica Investments, Shorooq Partners, Wamda Capital, Acronym Venture Capital, ScaleUP Ventures.
- Where is Penny headquartered?
- Penny is headquartered in Riyadh, SA.