Legato Secures $7 Million to Empower SaaS Users with AI App Building

Legato, a startup that enables business users to build AI‑driven apps directly inside software platforms, announced a $7 million seed funding round on Tuesday led by S Capital VC with participation from Cerca Partners. Founded in 2025 by Dana Rochman and Shlomit Tennenbaum, Legato bills itself as the first solution that embeds an AI builder inside SaaS products, allowing users to implement, customize and automate features in plain language while giving vendors full governance and control. The company said it will use the funding to accelerate research and development and expand its AI team. Implementations and customizations for SaaS platforms can take months and require costly external consulting, limiting product adoption and driving customer churn, Legato said. Some customers reportedly spend more on implementation services than on the software itself. As users increasingly turn to commercial AI tools to build workarounds, vendors risk losing long‑term commitment and visibility into usage, Legato said. While many platforms have introduced no‑code or so‑called vibe‑coding tools, those still depend heavily on technical teams. Legato’s platform uses a multi‑agent AI system that functions like a virtual professional services team, collaborating to build apps, workflows or AI agents safely within the host platform. Users describe their requirements in natural language, and the tool generates production‑ready software while maintaining visibility and governance for the platform provider. “SaaS platforms are realizing that equipping developers and admins with better no-code or vibe-coding builders is no longer enough,” said Rochman, Legato’s CEO. “The next battleground in the vendor AI race will be about empowering business users — those who understand the needs best — to create what they need themselves. Legato brings vibe app creation directly to non‑technical users, turning professional services into an autonomous, in‑product experience that is available to anyone.” Legato’s approach aims to unlock a new growth model for SaaS vendors called the Platform Creator Economy, in which users and partners build bespoke extensions and features at lower cost and in far less time than traditional professional services cycles, the company said. “While the multi‑billion‑dollar professional services market continues to grow at speed, in large part due to platform customization needs, SaaS vendors are missing out on enormous revenue-generating opportunities,” said Aya Peterburg, managing partner at S Capital VC. “With Legato, customizations are compressed into hours rather than months, saving time and resources on traditional professional services and turning the tide for SaaS platforms at risk of slowdown.” Legato said it already works with a range of SaaS platforms, from customer relationship management to HR technology, and plans to expand beyond SaaS into sectors such as financial services, healthcare, telecommunications and energy — any industry with platforms that have APIs and could benefit from autonomous, AI‑powered customization.