After quietly building in stealth mode, LightSource has emerged with $33 million in funding to take on one of the most overlooked enterprise functions: procurement. The AI-powered procurement platform is already making waves, having grown its annual recurring revenue (ARR) 10x over the past 18 months while onboarding major global brands like Yum! Brands, Hello Fresh, BRP, Shure, and Serta Simmons Bedding.
The San Francisco-based startup secured the funding across seed and Series A rounds, with backing from Lightspeed Venture Partners, Bain Capital Ventures, and J2 Ventures. The company is now valued at $130 million. With the fresh capital, LightSource plans to double down on growth, scale its team, and expand into new verticals including industrial chemicals and pharmaceuticals.
Reinventing Procurement With AI-Powered Intelligence
Procurement may handle billions in corporate spending, but it’s long remained in the digital dark ages—especially when it comes to sourcing materials directly tied to production. Incredibly, around 70% of procurement teams still manage this process manually, spread across disjointed tools like spreadsheets, PDFs, emails, and messy contract files.
LightSource is stepping in with a modern fix. Its AI-native platform streamlines direct and strategic indirect sourcing, transforming a traditionally complex, manual process into a smart, collaborative experience for both buyers and suppliers.
For buyers, the platform automates supplier discovery, quote requests, bid comparisons, and internal collaboration. Suppliers benefit too, with tools that simplify quote responses and help win new business faster. The result? Greater speed, better pricing, and stronger supplier relationships.
The platform’s AI capabilities also offer granular data analysis, allowing teams to compare supplier quotes across multiple formats—including PDFs, spreadsheets, and even email—right down to the Bill of Materials (BOM) level. Since 2024, more than $1 billion in spending has already been processed through LightSource, with over 1,100 sourcing events supported.
Gaining Traction in a Time of Uncertainty
LightSource’s launch comes at a time when global supply chains face constant disruption. From shifting trade dynamics to economic volatility, procurement leaders are under more pressure than ever to stay agile. The need for real-time visibility, scenario planning, and data-driven decision-making has never been more urgent.
That’s where LightSource shines. With its AI-powered procurement platform, it enables companies to not only respond faster to market changes but also unlock significant cost savings.
Procurement leaders like Roger Larsh from Yum! Brands say the platform has already delivered measurable results, from faster decision-making to more efficient spending. Adoption has also been rapid, thanks to its intuitive design and short onboarding time.
Backed by Industry Heavyweights
Investors see LightSource not just as another procurement tool—but as a foundational platform for modern enterprises. Lightspeed partner Anoushka Vaswani noted that many Fortune 500 companies are already using the platform across industries from consumer goods to electronics.
Bain Capital Ventures’ Ajay Agarwal echoed this, adding that LightSource is poised to become the default operating system for sourcing and procurement around the world. With seamless data interoperability and a user-first approach, the company is bringing much-needed innovation to a $10 trillion market.
