Frontegg, a user management platform for B2B apps, has netted $40m in its Series B round, which was co-led by Stripes and Insight Partners.
With the capital, Frontegg plans to expand its product offerings and invest into infrastructure. It also hopes to scale its R&D efforts and its go-to-market teams in Tel Aviv and San Francisco Bay Area.
Research from Gartner claims that SaaS spending will reach $208bn in 2023, up from $176bn in 2022. Echoing this rise of SaaS, research from Frontegg claims that over 70% of Series A funding rounds this year have been raised by B2B SaaS companies.
Frontegg claims to be the only solution that offers a robust and scalable user management infrastructure for B2B SaaS, handling the full user journey from signup to subscription. Its platform is multi-tenant at its core, which enables organisation-level granularity for any setting or configuration.
Its platform is designed around speed, with teams able to quickly get started and allows rapid migration paths for companies with outdated legacy solutions, it claims. Companies in the FinTech, cybersecurity and medical sectors currently leverage Frontegg.
Frontegg CEO and co-founder Sagi Rodin said, “Nowadays, users of business apps expect to seamlessly sign up for products using modern authentication methods, invite team members, control their roles, define organisation-wide security policies and upgrade subscription tiers.
“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 organisations.”
The company previously raised $25m in its Series A round, which closed in December. The company has now raised a total of $70m in equity, to-date.
Stripes is no stranger to the FinTech sector. It recently led the $32m funding round of Latin American FinTech company Noma, which is helping Brazilians establish bank accounts.
Copyright © 2022 FinTech Global