Highlights:

  • Reco’s AI can detect employee accounts with excessive access to business data, as well as unused login credentials—both of which can pose risks if exploited by hackers during a breach.
  • Reco also functions as a compliance tool, helping organizations ensure their SaaS environments meet regulations like GDPR.

Recolabs Inc. raised USD 25 million in the recent funding round for technological upgrade. The startup helps businesses secure their software-as-a-service (SaaS) applications.

The funding round, announced recently, saw participation from Insight Partners, Zeev Ventures, boldstart ventures, Angular Ventures, and Redseed. Reco reports that the investment follows a year of strong growth, with its annual recurring revenue increasing fivefold.

One of the key challenges in SaaS security is identifying all the applications employees use—especially those adopted without IT team’s knowledge. Reco addresses this by offering a platform that automatically discovers and maps these applications, streamlining security efforts for IT teams.

Once Reco identifies the cloud services in use within an organization, it scans them for security vulnerabilities using a suite of AI-powered agents.

Reco’s AI can detect employee accounts with excessive access to business data, as well as unused login credentials—both of which can pose risks if exploited by hackers during a breach.

Security risks in SaaS apps extend beyond user accounts. Many now include generative AI features like chatbots, which, if misconfigured, could expose sensitive user data to others. Reco’s platform is designed to spot such AI-related data leaks and monitor integrations that might inadvertently share data with other cloud systems.

Beyond identifying security vulnerabilities, Reco also detects potential exploitation attempts. It can flag unusual data access patterns that may indicate a compromised employee account. For each incident, the platform offers a clear, natural language summary and a timeline of related cybersecurity events.

Reco also functions as a compliance tool, helping organizations ensure their SaaS environments meet regulations like GDPR. To streamline this process, it includes hundreds of built-in detection controls and automated workflows that identify issues such as misconfigured security settings.

“The adoption of AI apps and agents has made SaaS security more complex and dynamic than ever,” said Co-founder and Chief Executive Officer Ofer Klein. “Combine this with the proliferation of SaaS apps including shadow apps, and we’re seeing a growing gap between the reality of the ecosystem and what legacy SSPM tools can provide.”

Reco plans to use the funding to improve its AI agents and expand compatibility with additional SaaS applications. At the same time, it aims to grow its sales by building more channel partnerships.