Software-as-a-service user management platform Frontegg Ltd. announced it has received another big chunk of funding today, closing on a $40 million round.
The Series B raise was co-led by Stripes and Insight Partners and brings the company’s total amount raised to date to $70 million.
Frontegg has created a novel “SaaS-as-a-service platform” that includes a number of pre-built components that developers can easily add to the SaaS business apps they’re building, saving themselves the trouble of adding these things themselves. The idea is that it eliminates the grunt work of creating essential features that are common to all SaaS applications. This means developers have more time to focus on the features that make their apps different.
Common components to all SaaS apps include things like audit log managers. Frontegg provides one that’s pre-built, which can be white-labeled and then integrated with any new SaaS offering.
Frontegg said the new funds announced today will help it to capitalize on a massive gap within a SaaS market that Gartner Inc. has forecast will be worth $208 billion by 2023. As the company explains, there’s a big issue in that popular user management solutions such as Auth0 and Okta, which are widely used in the enterprise today, do not play nicely with business-to-business-focused applications.
The problem is that these solutions are focused on individual users rather than organizations and do not support company-level settings, such as requiring a password to be a certain length. In addition, they only provide login and signup capabilities, but do not extend to support invites to team members, roles and permissions and subscriptions, Frontegg explains.
So although many enterprises use products such as Auth0 and Okta, they have to do lots of fiddling around, hacking and patching things to make them work with their SaaS-based B2B applications. That explains why some of the biggest B2B SaaS app providers, such as Airtable Inc., Slack and Notion Labs Inc., all use their own custom user management software, Frontegg said.
“Nowadays, users of business apps expect to seamlessly sign up for products using modern authentication methods, invite team members, control their roles, define organization-wide security policies and upgrade subscription tiers,” said Frontegg co-founder and Chief Executive Sagi Rodin. “Building these capabilities in-house is extremely resource-intensive due to their complexity, sensitivity and scope. Existing user management products offer partial solutions because they only solve authentication and are built to manage individuals, not teams and organizations.”
Frontegg says it is solving user management headaches for B2B SaaS app developers with key upgrades to its platform that can handle everything from signing up to organization-wide updates. For instance, it said it has added the most advanced no-code builder for login and signup pages, enabling product and marketing teams to perform customizations and designs without any coding.
At the same time, it has added a “Backoffice” feature that allows B2B SaaS companies to see and manage all accounts that have signed up to a specific app. Finally, it has added support for subscriptions, making it simpler for B2B SaaS companies to offer free trials, freemium tiers and upgrades, while enabling product teams to adjust pricing tiers using no-code tools.
Frontegg said its platform now serves as the user management infrastructure of more than 150 B2B SaaS companies, including the likes of Datadog Inc., Cyber Hunters Ltd., Okera Inc. and Tomorrow Cos. Inc.
“Building and maintaining world-class user management has become an increasingly heavy burden on development teams,” said Stripes Partner Saagar Kulkarni. “In turbulent economic times like these it’s more important than ever for B2B SaaS companies to go to market fast — but with a mature product that is in line with today’s user’s expectations from business tools.”
Show your support for our mission by joining our Cube Club and Cube Event Community of experts. Join the community that includes Amazon Web Services and Amazon.com CEO Andy Jassy, Dell Technologies founder and CEO Michael Dell, Intel CEO Pat Gelsinger and many more luminaries and experts.