GrowthPal, an AI-powered M&A software provider focused on deal sourcing and execution, has raised $2.6m to accelerate the development of its platform and expand its international footprint.

The funding round was led by Ideaspring Capital, with participation from prominent angel investors globally. The new capital will be used to support ongoing product development and to grow GrowthPal’s presence across the US and other international markets.

GrowthPal is positioning itself to address long-standing inefficiencies in M&A origination, particularly for mid-market and early-stage transactions. Deal sourcing in this segment has historically relied on banker networks, static databases and fragmented research processes, often limiting buyers to in-market opportunities while leaving high-quality off-market targets undiscovered, it said.

The company aims to replace this relationship-driven approach with AI-led reasoning that enables teams to move from strategy to action in a matter of days rather than months.

The platform operates as an intelligent M&A copilot. Buyers begin by defining a specific growth objective, such as acquiring a capability or entering a new geography. GrowthPal translates this objective into a structured acquisition thesis, which is then executed by AI agents scanning an enriched database of more than four million technology companies. These agents analyse signals including public filings, web activity, hiring trends and funding history to surface a focused list of high-fit, often off-market targets aligned with the buyer’s mandate.

 GrowthPal CEO Maneesh Bhandari said, “M&A sourcing is where most time and effort is wasted, especially for smaller and mid-market deals.

“Teams spend weeks researching, filtering, and chasing opportunities that never go anywhere. We built GrowthPal to help buyers focus only on high-intent, high-fit targets and move from mandate to meaningful conversations far faster.”

Naganand Doraswamy, managing partner at Ideaspring Capital, “GrowthPal is solving one of the most under-optimised parts of the M&A lifecycle.

“By focusing on qualified deal discovery and using AI to compress timelines, the team is enabling a more systematic approach to inorganic growth that traditional tools cannot offer.”

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