Freshworks, a Nasdaq-listed SaaS company, has signed a definitive agreement to acquire Torii, a SaaS management platform, to expand its AI and software spend governance capabilities. The acquisition is expected to close in the quarter ending December 2026, according to inc42.com. This move will extend Freshworks' IT service management tool, Freshservice, by integrating Torii's platform to provide better visibility into AI usage and costs.
Torii, founded in 2017 by Uri Haramati, Uri Nativ, and Tal Bereznitskey in New York, offers enterprises tools to track AI consumption at the token level, attribute usage to internal teams, forecast spending, and set budget limits. Freshworks plans to embed these capabilities into Freshservice, enabling IT and finance departments to gain continuous oversight of AI and software expenses. Freshworks CEO Dennis Woodside highlighted that this integration replaces manual spreadsheet reconciliation with real-time analytics, allowing IT and finance to make decisions collaboratively.
The acquisition reflects growing demand for governance tools as enterprises increase AI adoption and seek to control related costs. Freshworks, founded in 2010 by Girish Mathrubootham and Shanmugam Krishnasamy, already offers cloud-based software for customer engagement, sales, IT service management, and marketing. By adding Torii's SaaS management features, Freshworks aims to provide a unified platform that helps organizations monitor what software and AI services are running, who is using them, and their associated costs.
The transaction is set to complete by the end of December 2026, marking a strategic expansion of Freshworks' product offerings in AI spend governance. This acquisition positions Freshworks to better serve IT teams tasked with managing growing software and AI expenditures across enterprises.