Penny Software

Riyadh-based B2B procurement software company offering procure-to-pay and spend management tools and a supplier marketplace.

Industry: Procurement software | Location: Riyadh, Saudi Arabia | Founded: 2020

About Penny Software

Penny Software, which trades as Penny AI, builds procurement software for enterprises in Saudi Arabia. Its platform covers the source-to-pay process: purchase requests with structured forms and approval checks, e-sourcing for RFQs, RFPs and RFIs with side-by-side bid comparison and automated scoring, purchase orders and awards linked to budgets, a supplier portal, goods-received notes, billing and payments, budget management and expense accounts, with live dashboards on spend. Its solutions pages target procurement, spend management, supply chain and IT teams, and needs such as accounts-payable automation, cost optimisation and supplier risk management.

A separate Local Content product tracks a company's local-content baseline score through the year, with dashboards across four pillars (goods and services, labour, capacity building and assets) and exports meant to ease audits by the Local Content and Government Procurement Authority. It can consolidate data through bulk uploads or ERP connections.

Wamda lists the founders as Iyad Aldalooj, Majid Aldalooj and Mohamad Ibrahim. The company is based in Riyadh. Sources disagree on its start: Wamda gives 2020, while another outlet says it launched in 2022.

Funding as reported: a seed round of about USD 5 million led by Outliers Venture Capital, with Shorooq Partners, Hambro Perks Oryx Fund and Class 5 Global taking part (dated 2021 by Wamda and January 2022 by another outlet). In April 2024 the company announced an undisclosed pre-Series A round led by Iliad Partners, with GSI and US-based Knollwood Investments joining and existing investors, including Dallah Investment, taking part. The company said it planned to manage more than USD 1 billion in gross transaction value in 2024.

In February 2025 Penny Software announced a partnership with the National Housing Company (NHC) on housing procurement. No later priced round was found.

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