Freshworks plans to acquire Torii to expand Freshservice with AI cost management features
Read more
YourStory [india, en]
yourstory.com

Freshworks plans to acquire Torii to expand Freshservice with AI cost management features

Freshworks has signed a definitive agreement to acquire Torii, a SaaS management platform, to extend the capabilities of its Freshservice product in software spending management and artificial intelligence oversight.

The proposed acquisition aims to provide enterprises with a unified view of their software applications, licenses, user IDs, and AI usage, helping IT and finance teams control costs, reduce waste, and manage security risks associated with unregulated software and AI tools.

As companies increasingly adopt subscription software and AI-based applications, organizations face difficulties tracking usage and managing expenses. AI tools, in particular, introduce consumption-based pricing models, which complicates forecasting and cost control.

The integration of Torii with Freshservice is expected to help companies track software usage, identify unused licenses, and monitor AI consumption at the token level. The platform will also allow companies to attribute AI costs to specific employees and teams, forecast future spending, and set usage limits.

Dennis Woodside, CEO and President of Freshworks, noted: 'Modern IT teams are forced to manage more of the business than ever before, with less transparency regarding how much it costs. Freshservice already provides IT with a single view of everything they use. With Torii, this same view now extends to software and AI spend—what works, who uses it, and how much it costs, allowing finance and IT to stop cross-referencing spreadsheets and start making decisions together. As AI moves from experimentation to infrastructure, Freshservice is the way modern IT can manage this at scale.'

Uri Haramati, CEO of Torii, stated: 'AI and the underlying software are changing how every team works, and most IT leaders still cannot see this, let alone control it. We created Torii because IT, finance, and security were operating based on different partial views of the same problem. Freshservice already provides IT with a single system of record for everything it runs. Extending this functionality to software and AI means one less blind spot, not another dashboard.'

Founded in 2017, Torii helps organizations track software applications, AI projects, spending, licenses, and access rights. Its clients include Hearst Corporation, Groupon, and Koch Inc. The company was recognized as a leader in Gartner's Magic Quadrant for SaaS Management Platforms 2026. The deal is expected to close in Freshworks' fourth fiscal quarter of 2026, subject to standard closing conditions.

Similar stories

Harness acquires Augment Code assets to automate software coding
Read more
business-standard.com

Harness acquires Augment Code assets to automate software coding

The AI-powered software delivery platform Harness Inc has acquired several assets from the Augment Code coding platform for an undisclosed sum. This acquisition will allow the autonomous Software Development Life Cycle (SDLC) platform to gain deeper control over how machines generate code.

The deal includes Augment's Cosmos and Auggie CLI products, as well as a code context mechanism and related technologies. The teams behind these products will join Harness, accelerating the company's work to increase the autonomy of the entire software development process.

Jothi Bansal, founder and CEO of Harness, told Business Standard that this acquisition expands the company's scope in the coding cycle. He noted that having the correct context when writing code allows for the creation of safer and more reliable code from the outset. Since Harness manages testing, security, compliance, and governance processes, it possesses information about organizational functioning, and integrating this context into the coding process can improve the code before it undergoes subsequent checks.

Bansal, known as the founder of the business software company AppDynamics, which Cisco acquired for approximately $3.7 billion in 2017, explained that his ultimate goal is to achieve a fully autonomous SDLC, from idea to production. The San Francisco-based company was valued at $5.5 billion after raising $240 million in a Series E round in 2025.

He added that integrating Augment Code into Harness extends this goal. Augment Code has a product called Cosmos, which functions as a software factory. When an idea or task arrives, a set of agents transforms it into code, and the developer is involved in the process only when necessary. It is planned to implement the Cosmos software factory into the Harness platform to ensure end-to-end process execution.

Harness focuses on bottlenecks that occur after coding. Although machines have begun generating millions of lines of code across various enterprises, this code still requires human review and testing to ensure adherence to protective mechanisms, quality control, and security to eliminate vulnerabilities. Therefore, the company applies AI to testing, deployment, security, compliance, and cost optimization, which can account for 70–80 percent of the time after code creation.

When asked about the reasons for the acquisition, Bansal stated that the effectiveness of the agents directly depends on the context they receive. He emphasized that when coding context is combined with data from testing, security, compliance, and incidents, AI is capable of writing better code initially. Otherwise, the code may later prove unsuitable due to quality or security issues, making early inclusion of this context a key advantage of tight system integration.

Harness, whose clients include Citibank, United Airlines, and PayPal, expects to reach cumulative revenue of around $400 million by the end of 2026, with the Banking, Financial Services, and Insurance (BFSI) sector contributing nearly 30 percent of this volume. Globally, the company has 1300 employees, 500 of whom are based in India.

Igor Ostrovsky, co-founder and CTO of Augment Code, stated: 'We aimed to integrate AI throughout the entire SDLC, starting with context-aware coding.' He continued: 'Joining Harness is the next step toward this vision. Together, we can make engineering work increasingly autonomous, while engineers intervene only where judgment is truly required.'

Popular