Legato raises $7 million to bring AI app creation inside enterprise software
The startup is betting that business users, not developers, will shape the next phase of SaaS customization.
Enterprise software vendors have long relied on professional services and external consultants to adapt complex platforms to customer needs. These customization processes are often slow and costly, sometimes accounting for a significant share of a customer’s total spending on a software product. Despite those investments, adoption challenges remain common.
Legato, a startup founded in 2025, is seeking to address this problem by embedding AI-based application creation directly into SaaS platforms. The company announced a $7 million Seed round led by S Capital VC on Tuesday, with participation from Cerca Partners. The funding will be used to expand its research and development efforts and grow its AI team.
Legato’s technology allows business users, rather than developers or IT teams, to create applications, workflows, and automations inside existing software platforms using plain-language instructions. The system operates within the platform itself, with vendors retaining governance, visibility, and control over what is built.
Legato was founded by Dana Rochman and Shlomit Tennenbaum and is led by Rochman as CEO. The company is currently working with SaaS providers across areas such as customer relationship management and human resources software. It plans to expand beyond SaaS into other sectors that operate complex platforms with exposed APIs, including financial services, healthcare, telecommunications, and energy.
In recent years, many SaaS companies have introduced no-code and low-code tools, and more recently “vibe coding” capabilities. However, these tools are often still geared toward developers or administrators. Legato argues that this leaves business users dependent on technical teams despite having a better understanding of operational requirements.
Legato’s system uses a multi-agent AI architecture intended to replicate tasks traditionally handled by professional services teams. According to the company, users describe their requirements in natural language, and the system generates production-ready software within the platform environment. This is designed to reduce the time and cost associated with traditional customization cycles while keeping development activity within the vendor’s ecosystem.
“SaaS platforms are realizing that equipping developers and admins with better no-code or vibe-coding builders is no longer enough,” said Dana Rochman, CEO and Co-Founder of Legato. “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. It’s a win-win: platforms stay competitive and retain ownership of creation, while users can create tools around their business needs, in minutes rather than months.”
