Freshworks to buy Torii to track SaaS and AI spending

#acquisitions #pricing #security

Freshworks has agreed to acquire Torii, a startup that shows companies which software and AI tools their staff use and what those tools cost. The deal was announced on October 12, 2026, and the price was not disclosed. Freshworks expects it to close in the fourth quarter of its 2026 fiscal year. The bet is that AI tools, billed by usage, have become a cost that IT teams can no longer track by hand.

The deal

Freshworks, which is listed on Nasdaq, signed a definitive agreement to buy Torii, according to its announcement. Torii's tools will extend Freshservice, Freshworks' IT service management product. That is the help desk and tracking system IT teams use to run a company's technology.

Calcalist describes the deal as relatively small. The close still depends on the usual conditions.

Freshworks chief executive Dennis Woodside said IT teams must "govern more of the business than ever, with less visibility into what it costs." Torii chief executive Uri Haramati said AI and software are changing how every team works. Most CIOs, the executives in charge of IT, "still can't see it, let alone control it," he said.

What Torii does

Torii sells SaaS management software. SaaS means software as a service, the cloud apps a company pays for by subscription. Torii finds the apps and AI tools a company uses and links each one to its users, owners and spend. It also automates cleanup work, such as managing licenses and subscriptions.

A big target is shadow IT, the software staff use without the IT team's approval. Torii also tracks AI usage down to the token, the unit AI providers bill by. It assigns that usage to people and teams and forecasts future spend. Calcalist adds that it can set spending limits and flag sudden increases.

In its own post, Torii says Gartner named it a Leader in the 2026 Magic Quadrant for SaaS Management Platforms. It is the third year in a row. Freshworks names Hearst, Groupon and Koch among Torii's customers.

Torii's funding

Torii was founded in 2017 by Uri Haramati, Uri Nativ and Tal Bereznitskey. Calcalist, which describes it as an Israeli company, lists its main funding rounds:

Round	Date	Amount	Lead investor
Seed	May 2019	$3.5 million	Uncork Capital
Series A	February 2021	$10 million	Wing Venture Capital
Series B	February 2022	$50 million	Tiger Global Management

Calcalist puts Torii's total funding at $65 million. It also reports that Torii laid off 28 employees, about 30% of its staff, in June 2023 after missing revenue targets.

What changes for customers

Until the deal closes, Torii stays independent, the company says. Nothing changes for its customers today. Their setups, integrations, workflows, support contacts, renewal terms and product roadmap all stay the same.

After the close, Torii's tools are planned to sit alongside Freshservice's service desk, asset management and configuration database. That database is the record of every system an IT team runs. Torii says more details will follow after the close.

Where Freshworks stands

Inc42 reports that Freshworks' revenue rose 16% from a year earlier to $237.4 million in the quarter that ended in June 2026. It made a net profit of $3.2 million, against a net loss of $1.7 million a year earlier. Freshworks cut about 11% of its staff, around 500 people, earlier this year, Inc42 reports.

What this means for developers

For teams that use or pay for AI tools at work:

AI spend is becoming an IT line item. Tools like Torii track usage per person and team. Expect finance to ask which project each API key belongs to.
Label your AI usage now. Separate API keys or tags per team make token-level reports useful. A single shared key makes them meaningless.
Unapproved tools will get found. Shadow IT discovery is Torii's core job. Developers who sign up for AI tools on their own should expect IT to see them.
Freshservice admins should plan ahead. The integration comes after the close. Teams on both products should watch for how the two will connect.
Torii customers can wait. Nothing changes before the deal closes, the company says. Check your renewal date against the expected close.

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