According to Gartner, the SaaS industry is the largest public cloud service market and is expected to reach $176.6 billion in end-user spending by the end of the year and $208 billion in 2023. Managing users of SaaS products isn’t easy though. Creating a management system in-house is costly and takes time away from core product development. One company helping business-to-business (B2B) cloud service providers is Frontegg, a user management platform that announced on Thursday it raised $40 million in Series A funding.
Frontegg offers a comprehensive user management experience that’s both robust and scalable to handle the full user journey from sign up to subscription. The multi-tenant, integrated platform allows companies full visibility and control over personal and organizational settings. It also makes it easy for companies to migrate from legacy user management systems to Frontegg’s infrastructure. The company says this makes it a popular choice for organizations in industries like fintech, cybersecurity and medical tech.
“Frontegg provides always-on critical infrastructure that is built for reliability at scale,” Frontegg co-founder and CTO Aviad Mizrachi said in a statement. “Downtime is unacceptable for capabilities that are at the core of an application — many customers migrated to Frontegg from legacy solutions due to recent outages. We take the responsibility of building critical infrastructure very seriously and this investment will allow us to continue to provide a solution our customers feel secure relying on.”
Frontegg has grown a lot since its launch late last year, amassing over 150 customers internationally, some of which include Datadog, Materialize, Okera, Hunters and Tomorrow.io.
Frontegg plans to use its new funds for product expansion and infrastructure investments in addition to growing its R&D and go-to-market teams. Currently the company is hiring for three positions with more likely to open soon.
Frontegg also told Built In that it plans to move its business headquarters from Tel Aviv to San Francisco this October.
“San Francisco has an unparalleled community of founders and innovators as well as top sales and marketing talent with expertise in bringing tech solutions to enterprise customers. As a growing number of enterprises adopt Frontegg’s user management solution, we’re relocating the business headquarters and scaling our go-to-market teams in the Bay Area,” CEO and co-founder Sagi Rodin told Built In in an email. “This will complement our highly skilled product development teams that will continue to grow in our R&D headquarters in Tel Aviv.”
Frontegg isn’t the only company in the B2B sector to raise funds this week. Also founded in Tel Aviv before moving to San Francisco, Balance is a B2B transaction company that raised $56 million Tuesday.
