Torii Labs Ltd., maker of a platform that helps businesses manage the proliferation of software-as-a-service applications, today said it raised $50 million in Series B financing, bringing its total funding to $65 million.

The company is addressing a rapidly growing need in enterprises as business users assume greater control for their own software choices. A survey of 523 information technology and security professionals last year by BetterCloud Inc. found that businesses were then using 80 SaaS applications on average, a 10-fold increase over 2015, and that those companies estimate that 85% of the business software will be SaaS-based by 2025.

However, fewer than half of respondents said their IT organizations have the ability to identify and monitor unsanctioned SaaS usage with confidence and 76% said unsanctioned applications are a security risk. A separate study by Flexera Software LLC found that nearly 30% of SaaS spending is underutilized or wasted.

Torii’s platform discovers both sanctioned and unauthorized SaaS applications in use and organizes them into a catalog that can become a de facto app store. It includes controls for managing user access and audit permissions and connections to financial applications that optimize spending and recommend ways to reduce costs. There is also a workflow feature that organizations can use to automate the provisioning, configuration and data movement features of new SaaS applications

The company says organizations typically have at least three times as many SaaS applications in use as IT is aware of and add 18 to 19 new ones each month, three-quarters of which are not sanctioned. The use of unapproved applications can incur regulatory penalties and create security vulnerabilities.

“The old way of centralized decision-making doesn’t work in the cloud,” Uri Haramati, Torii’s founder and CEO, said in a statement. “It’s now easier than ever for any employee to trial, deploy, integrate and expense any new cloud application.”

The company said revenue has grown 300% and headcount jumped 600% over the past year, both off undisclosed bases, as it landed well-known customers like Instacart Inc., Carrier Corp., Bumble Trading Inc. and Palo Alto Networks Inc.

Funding will be used to grow its sales organization in the U.S. and development and engineering groups in Israel as well as to further integration with other applications and expand usage scenarios inside customer organizations

The investment round was led by Tiger Global Management LLC, with participation from previous investors Wing Venture Capital, GFC Global Founders Capital SARL, Uncork Capital Inc., Entree Capital and Scopus Ventures LLP.

Photo: Torii