No-code SaaS startup Formaloo has secured US$2.2M seed funding from Change Ventures, Hyde Park Venture Partners, Mana Ventures & Startup Wise Guys. The Tech Factor looks at the details about the development.
Formaloo, a collaborative no-code SaaS app builder startup, recently raised US$2.2 million in seed funding. The company is dually headquartered in Tallinn (Estonia) and Toronto (Canada). Change Ventures led the round, while Hyde Park Venture Partners, Mana Ventures & Startup Wise Guys also participated. Since securing a spot in DMZ’s Spring 2024 incubator cohort in late 2022, this is Formaloo’s first significant round of funding announced publicly.
Formaloo allows businesses to build forms, databases & customizable apps without using any code. The software integrates with Slack, Google and Microsoft, and allows users to build interfaces by simply dragging and dropping building blocks. The company says it has a strong community of 25,000+ users participating in the platform’s development process.
Overall, Formaloo aims to help businesses of all sizes collect, organize & utilize data in a fast & cost-efficient way.
“When we first met with the founders of Formaloo, it was not only their impressive traction that immediately captured our attention but also the multitude of obstacles they had managed to overcome despite their limited resources. From their relocation to Estonia to their successful acquisition of thousands of users, and their compelling articulation of the grand vision for Formaloo, their journey was nothing short of remarkable.”
Rait Ojasaar, Investment Partner at Change Ventures
The company claims that over 65,000 databases and business applications have already been created on the platform. Formaloo’s client roster boasts US, Germany, India, Australia, France, and South-East Asia companies. Moreover, it includes coveted names like Bolt, Meta, and McDonald´s.
The company will use funds from this round to ramp up marketing efforts in these regions and expand into UK & Canada.
Also read: Toronto SaaS startup Rose Rocket raises US$38M for growth
Formaloo envisions a comprehensive No-Code SaaS ecosystem
The 4-member team of Farokh Shahabi, Noosh Baratpour, Hasan Noori, and Amir Hashemi founded Formaloo in 2020. They all hail from Iran and emigrated to Estonia to start the company. The company detailed Shahabi’s background as a serial entrepreneur with two prior exits and M&A experiences.
The founders have all previously developed and sold data mining solutions to clients. When clients started coming up with requirements daily, they decided to create software that would help clients create customized new modules quickly & independently. As the solution found growing success, the team decided to turn it into a startup. The team says it’s targeting a US$46B market and will target small enterprise customers with up to 500 employees.
“We want to democratize software development. Everyone can be a developer with Formaloo! Formaloo aims to be more than just yet another no-code platform. Our goal is to establish a comprehensive no-code ecosystem, where every no-code developer can bring their ideas to life using a unified set of tools. Not just Formaloo, but all of their favourite tools, together.”
Farokh Shahabi, CEO of Formaloo
The No-Code/Low-code (NCLC) platforms are reducing the entry barrier for creating technical solutions, leading to their rapid adoption. NCLC is an emerging, fast-growing market and VC funding in the segment grew five-fold in just 2021. By 2024, these platforms could generate US$187B in revenue and account for up to 60% of all application development. As per ISG, NCLC market was about US$25B in 2022 and can grow at 28% CAGR to US$45.5B by 2027. [Tip: Read our latest Canadian market reports & analysis here].
Shopstory, Sweep, Aptile, and Loro Insurtech are other notable no-code startups that have raised VC funding.
Also read: Quick backend development tool Platformatic gets US$3.5M seed
