Freshworks to acquire Torii to expand Freshservice into AI spend governance

What happened

Freshworks plans to acquire (one company buying another) Torii to expand Freshservice into software and AI spend governance, helping businesses track usage, control costs and mitigate security risks. Freshworks has signed a definitive agreement to acquire Torii, a SaaS management platform, as it looks to expand its Freshservice offering into software spend management and AI governance.

The proposed acquisition aims to give businesses a unified view of their software applications, licences, user identities and AI usage, helping IT and finance teams monitor costs, reduce waste and manage security risks associated with unregulated software and AI tools. As companies increasingly adopt subscription-based software and AI applications, organisations are facing challenges in tracking usage and managing costs. AI tools, in particular, introduce consumption-based pricing models that can make expenditure difficult to forecast and control.