Reco Raises $25M to Enhance SaaS Security Amid Rapid Growth

Reco, a SaaS security startup, has raised $25 million in new funding, bringing its total to $55 million, to further develop its AI-powered platform that addresses the growing complexity of SaaS security. The company has experienced rapid growth, reporting a fivefold increase in annual recurring revenue and a tripling of its customer base, which includes clients in highly regulated sectors like finance, healthcare, and technology. As enterprises now operate over a thousand SaaS applications on average—with 80% of employees using unauthorized apps that contribute to a significant portion of data breaches—Reco's platform aims to provide visibility, detection, and proactive security for both authorized and shadow IT. Reco claims its application discovery engine can identify and classify over 50,000 apps, integrates new ones within days, and uses AI agents to spot misconfigurations, excessive privileges, and potential data leaks, especially those introduced by generative AI features. The company asserts its solution is faster and requires less maintenance than legacy competitors, helping organizations keep pace with the rapid expansion of digital tools and threats. The new funding will be used to scale operations, accelerate partnerships, and expand Reco's platform capabilities.