LightSource likely to raise at least USD 100m in Series B within 12–18 months – CEO

LightSource, a provider of artificial intelligence-powered supply chain software, plans to raise at least USD 100m in a Series B round within 12 to 18 months, said CEO Spencer Penn.

The San Francisco-based company will target financial sponsors and use proceeds for product development, hiring, and in-person events, Penn said. It may hire an advisor to run a process, he added.

In April 2025, LightSource completed a USD 33.5m Series A at a valuation of USD 130m, according to Penn. Investors include Lightspeed, Bain Capital Ventures, Pillar VC, J2 Ventures, and Pareto Holdings.

Penn declined to comment on revenue but said LightSource grew 300% last year and expects similar growth this year, with 200% growth expected in 2027 and 2028. In three years, the company should be positioned to go public, if it chooses to do so, the CEO said.

While there is no set timing for an exit and Penn did not rule out a sale, he stated that, “the objective is to build a business that is IPO-ready.”

LightSource could be profitable but is reinvesting in growth, according to Penn. The business tripled its head count last year and now has approximately 30 employees.

Its AI-native platform automates the entire supply-management lifecycle process, including sourcing potential suppliers, managing requests for quotes, comparing bids, and helping teams collaborate.

To date, the platform has processed more than USD 1bn in spend and facilitated more than 1,100 sourcing events.

LightSource was founded in 2021 by Penn and CTO Idan Mintz, both in their early 30s. The co-founders still own the majority of the business, Penn said.

Penn, who has an MBA and a Masters in Science of Engineering from Harvard, previously worked at Tesla and Waymo. Mintz was a former software engineer for Microsoft and Google.

LightSource caters to original equipment manufacturers and manufacturing businesses. Its customers include Fortune 500 and Global 2000 organizations, as well as private equity-backed companies, Penn said. LightSource is approaching 100 customers, he added, including Canada Goose, Hello Fresh, and hims & hers.

Most customers are based in the US or Europe, though Penn said LightSource caters to their global teams, including in India and China.

While supply chain software has historically been focused on indirect spend (costs for products and services used for running the business), LightSource focuses on both indirect and direct spend (costs for raw materials and components directly used in making products), Penn said. Direct spend makes up the majority of corporate spend, sometimes as much as 80%-90% in manufacturing businesses, yet it is managed largely through Excel and email, according to the CEO.

Penn noted other players in the space as Thoma Bravo-backed Coupa Software, SAP, Workday, Ramp, and Oracle.

Recent notable deals, according to Penn, include Coupa’s acquisitions last year of AI-powered supplier discovery platform Scoutbee and AI-powered category management and sourcing firm Cirtuo. In November 2025, Ramp was valued at USD 32bn after a USD 300m financing round led by Lightspeed Venture Partners.

According to Penn, industry multiples can vary widely, from 10x ARR to as high as 50x ARR in some cases, driven largely by growth trajectory.

LightSource has additional offices in Seattle and Denver. It uses law firm Gunderson Dettmer and accounting firm EisnerAmper.

Mergermarket is a global business and M&A newswire with nearly 300,000 investment community subscribers, including investment banks, private equity firms, lenders, law firms, accounting firms and corporates. Founded in 1999, its 600 worldwide journalists and analysts provide news and analysis on corporate strategy, mergers & acquisitions, and equity capital markets.