Freshworks Acquires Torii to Extend AI Spend Management and Software Governance Capabilities

Freshworks Expands Into AI Spend Governance with Torii Acquisition

Nasdaq-listed SaaS company Freshworks has signed a definitive agreement to acquire Torii, a New York-based SaaS management platform, marking a strategic expansion of its Freshservice IT service management platform into software and AI spend governance1

1

2

2

. The transaction is expected to close in the quarter ending December 2026, subject to customary closing conditions2

2

3

3

.

The Torii acquisition addresses a critical challenge facing modern IT teams: the proliferation of SaaS and AI tools has created partial visibility, while AI's consumption-based pricing has introduced cost models that most finance systems weren't built to track3

3

. This gap can lead to unnecessary software spend and increase security risks associated with unmanaged tools.

Comprehensive Visibility Into Software Applications and AI Costs

Founded in 2017 by Uri Haramati, Uri Nativ, and Tal Bereznitskey, Torii helps enterprises track AI consumption at the token level, attribute usage to specific internal teams, forecast spend trajectories, and set operational budget limits2

2

. The platform provides IT and finance departments with continuous oversight, replacing manual spreadsheet reconciliation with real-time analytics2

2

.

By integrating Torii's capabilities, Freshworks aims to provide businesses with greater visibility into their software applications, licenses, user identities, and AI-related expenditure1

1

. The combination brings the full picture of a company's technology inventory, usage, and cost control into one place, offering clarity on what it costs and what it's worth3

3

.

Torii pioneered the SaaS management platform category and was recently named a Leader in the 2026 Gartner Magic Quadrant for SaaS Management Platforms3

3

. Companies including Hearst Corporation, Groupon, and Koch, Inc. already trust Torii to govern their software and AI spend3

3

.

Strategic Move as AI Tool Adoption Accelerates

Dennis Woodside, CEO and President of Freshworks, emphasized the strategic importance of AI spend management: "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"2

2

3

3

.

Uri Haramati, CEO of Torii, added: "AI and the software behind it are changing how every team works, and most CIOs still can't see it, let alone control it. We built Torii because IT, finance, and security were each working off a different partial picture of the same problem"3

3

.

Freshworks' Transformation Into an AI-Native Platform

Founded in 2010 by Girish Mathrubootham and Shanmugam Krishnasamy, Freshworks offers cloud-based software to help companies manage customer engagement, sales, IT service management, and marketing2

2

. After Mathrubootham exited in 2024, the company has reinvented itself as an AI-native platform under Woodside's leadership2

2

.

The company underwent major restructuring earlier this year, trimming 11% of its workforce or around 500 employees, citing automation of work2

2

. Growing adoption of its AI products helped Freshworks return to profitability in the quarter ended June 2026, reporting a net profit of $3.2 Mn compared to a net loss of $1.7 Mn in the year-ago period and a net loss of $4.8 Mn in the previous quarter2

2

. Revenue grew 16% year-over-year to $237.4 Mn2

2

.

The acquisition positions Freshworks to capture the growing demand for token-level tracking and budget forecasting as AI moves from experiment to infrastructure, enabling IT teams to charge back costs, set limits, and catch spending spikes early3

3

.