Nasdaq-listed SaaS major Freshworks has signed a definitive agreement to acquire Torii, a SaaS management platform, to extend its IT service management tool, Freshservice, into AI and software spend governance. The transaction is expected to close in the quarter ending December 2026.
Founded in 2017 by Uri Haramati, Uri Nativ and Tal Bereznitskey in New York, Torii helps enterprises track AI consumption at the token level, attribute usage to specific internal teams, forecast spend trajectories, and set operational budget limits.
By integrating its SaaS management capabilities into Freshservice, Freshworks aims to enable organisations to have better visibility of their AI usage. The system provides IT and finance departments with continuous oversight, replacing manual spreadsheet reconciliation with real-time analytics.
“Modern IT teams are being asked to govern more of the business than ever, with less visibility into what it costs. Freshservice already gives IT one place to see everything they run. With Torii, that same view now extends to software and AI spend — what’s running, who’s using it, and what it costs, so finance and IT stop reconciling spreadsheets and start making decisions together,” said Freshworks CEO and President Dennis Woodside.
Founded in 2010 by Girish Mathrubootham and Shanmugam Krishnasamy, Freshworks offers a suite of cloud-based software to help companies manage customer engagement, sales, IT service management and marketing.
After Mathrubootham exited the company in 2024, it has sought to reinvent itself as an AI-native enterprise platform under Woodside’s leadership. Apart from introducing AI-led offerings like vertical AI agents and workflow automation tools, it also underwent a major restructuring earlier this year, trimming 11% of its workforce or around 500 employees, citing automation of work.
Growing adoption of its AI products helped Freshworks get back into the black in the quarter ended June 2026. The company reported a net profit of $3.2 Mn as against a net loss of $1.7 Mn in the year-ago period and a net loss of $4.8 Mn in the previous quarter. Meanwhile, its revenue grew 16% YoY to $237.4 Mn.
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