Legato: $7 Million Seed Funding Raised To Bring In-Product Vibe App Creation To Business Users

By Amit Chowdhry • Today at 9:39 AM

Legato, an early-stage startup building “vibe app creation” capabilities that can be embedded directly inside B2B software platforms, has raised a $7 million seed round led by S Capital VC with participation from Cerca Partners.

Based in Tel Aviv and led by two female founders, Legato positions its product as an AI-powered builder that lets non-technical business users create tailored apps, workflows, and automations inside the SaaS products they already use. The company says its approach is designed to reduce the time and cost of platform customization while keeping governance and control with the platform vendor.

Custom implementation work remains a persistent friction point for many SaaS businesses and their customers. Platform rollouts and extensions can take months, and enterprises often rely on external consultants and professional services to deliver customizations that drive adoption. Legato argues this dynamic can cap expansion, contribute to churn, and push users toward external AI tools that operate outside the vendor’s environment—reducing visibility into usage and weakening long-term customer stickiness.

Over the past few years, many SaaS vendors have launched no-code builders, and more recently, vibe-coding experiences. Legato’s thesis is that those tools still tend to be oriented toward developers, admins, or technical teams, leaving business users dependent on internal resources to get meaningful outcomes into production. Legato aims to shift app creation closer to the domain experts by giving business users a plain-language interface that produces production-ready outputs inside the product.

The company says its system runs as a multi-agent AI layer that effectively mirrors a virtual professional services team. Users describe what they need in simple language, and the engine collaborates behind the scenes to generate the app or workflow while maintaining platform-level visibility, permissions, and guardrails for the vendor. Legato describes the end state as an “autonomous, in-product professional services experience” that compresses customization cycles from months to hours.

Legato is also promoting what it calls the “Platform Creator Economy,” a growth model where customers, partners, and internal teams build verticalized apps and features within the platform and publish them to marketplaces. The company believes this can create a flywheel for SaaS vendors by turning community-built extensions into adoption drivers and new revenue streams.

Proceeds from the seed round will be used to accelerate R&D and expand Legato’s AI team. The company said it is already working with a range of SaaS platforms, including CRM and HR technology providers, and plans to extend its reach beyond SaaS into other platform categories such as financial services, healthcare, telecom, and energy—particularly where API-rich systems could support embedded, AI-assisted customization.

KEY QUOTES:

“SaaS platforms are realizing that equipping developers and admins with better no-code or vibe-coding builders is no longer enough. 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.”

Dana Rochman, CEO and Co-Founder, Legato

“While the multi-billion-dollar professional services market continues to grow at speed, in a large part due to platform customization needs, SaaS vendors are missing out on enormous revenue generating opportunities. 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. The founders, Dana and Shlomit have faced firsthand the obstacles SaaS platforms are up against. Combining deep enterprise and AI expertise alongside an exceptional ability to execute, Legato is transforming SaaS software into fully extendable AI platforms that provide platform adoption from day one.”

Aya Peterburg, Managing Partner, S Capital VC