GrowthPal has raised $2.6 million in a funding round to strengthen its tools for sourcing and executing mergers and acquisitions. The round was led by Ideaspring Capital, with support from several angel investors based in different countries.
The company said the funding will be used to improve its product and support expansion into overseas markets, as businesses look for quicker and more organised ways to pursue acquisitions.
Maneesh Bhandari, co-founder and chief executive of GrowthPal, said deal sourcing continues to consume a disproportionate amount of time, particularly in small and mid-sized transactions. Teams often review dozens of potential targets without seeing any real progress. GrowthPal, he said, was built to reduce that effort and help buyers focus on companies that are more likely to lead to meaningful discussions.
GrowthPal’s platform acts as a digital assistant for M&A teams. Buyers begin by outlining a specific growth objective, such as entering a new sector or strengthening a particular capability. The system then converts that input into an acquisition plan.
The platform analyses information from more than four million technology companies, using publicly available data, hiring trends, online signals, and funding records. Based on this, it produces a shortlist of off-market companies that match the buyer’s criteria.
According to the company, GrowthPal has supported over 42 completed acquisitions and enabled more than 210 letter-of-intent conversations across regions including North America, Europe, Asia, and Latin America. Its customers include large corporates, growing startups, and private equity-backed firms, especially in areas such as IT services and fintech. In one case, a customer completed seven acquisitions over an 18-month period using the platform.
Naganand Doraswamy, managing partner at Ideaspring Capital, said GrowthPal is addressing a part of the M&A process that has seen little innovation. By improving how deals are identified and reducing the time spent on sourcing, the platform allows teams to approach inorganic growth in a more structured way.
GrowthPal plans to expand its offering beyond deal discovery, with future work focused on valuation analysis, deal structuring, and preparation for negotiations. The company’s aim is to help teams make clearer decisions earlier in the process.
As M&A teams are increasingly expected to deliver results with smaller teams and tighter timelines, traditional deal sourcing methods are under strain. Despite changes elsewhere in the market, many mid-market and early-stage deals are still driven by personal networks and static databases. GrowthPal is positioning its platform as an alternative to that approach.
