Highlights:

  • Vertice develops an expenditure management platform that leverages an artificial intelligence-driven orchestration layer to streamline and optimize companies’ spending on software and cloud computing infrastructure.
  • The company aims to eliminate the complexities of procurement, allowing organizations to focus on innovation while maintaining complete control and transparency over their finances and spending.

Procurement software startup company Vertice Technology Inc. raised USD 50 million in the funding round spearheaded by Lakestar. This brought its total amount to more than USD 100 million, leading to the reported valuation of USD 500 million.

The Series C round also saw participation from Perpetual Growth and CF Private Equity, along with existing investors Bessemer Venture Partners and 83North, according to the company.

Vertice develops an expenditure management platform that leverages an artificial intelligence-driven orchestration layer to streamline and optimize companies’ spending on software and cloud computing infrastructure. This AI-powered layer provides a wealth of data points and insights, enabling customers to make quicker and more informed purchasing decisions.

Vertice Chief Executive and Co-founder Roy Tuvey declared the funding round where he envisioned a latest procurement software platform developed to support precises decision-making. According to Tuvey, such a platform must include real-time pricing benchmarks, insights into optimal solutions, alerts for unplanned spending, and collaboration and analytics tools to streamline every stage of the purchasing process—capabilities that Vertice delivers.

With all these features, Vertice positions itself as the “integrated backbone” of financial operations and procurement, helping businesses scale efficiently. The company aims to eliminate the complexities of procurement, allowing organizations to focus on innovation while maintaining complete control and transparency over their finances and spending.

Tuvey notes that procurement has become a critical focus for organizations in recent times, citing examples like Donald Trump’s decision to appoint Elon Musk as the head of a newly established “Department of Government Efficiency,” or DOGE.

“Scrutiny of spend has increased, while the capability to deliver savings has not,” Tuvey said. “Businesses operate globally. Vendors are multiplying with overlapping capabilities. Buying is increasingly decentralized. Data is siloed and actionable insights are rare — all of which undermine the fundamentals of best practice procurement: control, visibility and transparency.”

The urgency to address procurement challenges is expected to grow. According to Gartner Inc., organizations are projected to increase spending on data centers, software, communications services, and related IT by nine percent this year, reaching nearly USD five trillion. This presents significant opportunities to optimize such substantial expenditures.

Vertice is not the only company tackling this issue. Competitors include platforms such as Spendesk SAS, Spendbase Inc., G2.com Inc., and even Gartner.

However, Tuvey explained that Vertice sets itself apart by incorporating a broader range of business data to provide smarter procurement recommendations. The platform takes a similar approach to cybersecurity firms analyzing network activity—it builds a comprehensive picture of what a company does, what resources it needs, and its typical spending patterns. From there, it identifies more efficient ways to achieve the same goals.

Vertice can be seen as a sophisticated software procurement model driven primarily by actual software usage within companies rather than just static data and insights.

Tuvey explained that the platform places a strong emphasis on contract information, which is fed into its AI models. Using this data, Vertice creates AI copilots designed to assist customers with purchasing, automating many tasks that finance teams previously handled manually.

“We surface benchmark pricing insights and analytics that they need at the point of purchase,” Tuvey said. “AI is really interesting when it comes to procurement orchestration, because you can learn where the company has bottlenecks in their processes.”

He provided an example of a company frequently facing delays due to bottlenecks in pricing and security compliance checks, explaining that Vertice can streamline these processes by running them in parallel, significantly speeding things up.

Businesses are increasingly embracing Vertice’s offerings, particularly in Europe. The company counts major players like chipmaking equipment manufacturer ASML Holdings N.V., global banking giant Santander Bank N.A., and investment firm Euronext N.V. among its customers.

To date, Vertice has facilitated more than USD 3.4 billion in software spending for its clients, helping them achieve savings of up to 30%, reduce maverick spending, and shorten procurement cycles. These efforts have driven a more than 13-fold increase in revenue over the past two years, though the company has not disclosed its revenue base.

Looking ahead, Vertice plans to use the new funding to enhance its AI platform, expand into new markets by opening regional offices, and grow its engineering team. Later features and capabilities in the development process include document extraction, a ready-to-use library of procurement templates, and thorough workflow analytics.