Freshworks, the Nasdaq-listed maker of customer and IT service software, said on October 12, 2026 that it had signed a definitive agreement to acquire Torii, a SaaS management company. Torii's product will extend Freshservice, Freshworks' IT service management platform, into tracking and governing what companies spend on software and AI tools.
Financial terms were not disclosed. Calcalist's CTech reported that the deal is estimated to be relatively small. Freshworks expects it to close in its fourth fiscal quarter of 2026, subject to customary closing conditions.
Until then the two companies operate independently. Torii CEO Uri Haramati wrote that nothing changes for customers for now: their instances, integrations, workflows, support contacts and renewal terms stay the same, the product roadmap continues, and the company is still signing new customers. Over time, Torii's governance tools are meant to sit alongside Freshservice's service desk, configuration database and asset management.
What Torii built
Torii gives IT, finance and security teams a single inventory of the applications, AI projects, licences, users, owners and access rights in use across a company, and ties that view to automated workflows. Those workflows handle tasks such as onboarding and offboarding, cutting unused licences, preparing renewals and keeping compliance evidence ready.
Its newer focus is AI spending. Torii tracks AI consumption down to the token, attributes it to individual employees and teams, forecasts usage and supports chargebacks, usage caps and early alerts when consumption spikes. Gartner named it a Leader in its 2026 Magic Quadrant for SaaS Management Platforms.
Freshworks named Hearst, Groupon and Koch among Torii's customers. Earlier funding announcements listed monday.com, AppsFlyer, Fiverr, Payoneer, Instacart and Palo Alto Networks.
“We built Torii because IT, finance, and security were each working off a different partial picture of the same problem.”
Why Freshworks is buying
Freshworks CEO Dennis Woodside said IT teams are being asked to govern more of the business than ever with less visibility into what it costs. He said Freshservice already gives IT one place to see what it runs, and that Torii extends that view to software and AI spend.
The pitch to customers is one system that shows every application, licence and identity in use, what each tool costs and whether it is worth it, while letting employees get access with fewer IT tickets. Haramati said IT, finance and security had each been working from a partial picture of the same problem, and that most CIOs still cannot see how AI is being used inside their companies, let alone control it.
Torii is Freshworks' second deal in the IT operations space in less than a year. In December 2025 it agreed to buy FireHydrant, an AI incident management platform, to pair with Freshservice. Calcalist put Freshworks' headcount at about 4,500.
New York headquarters, Israeli engineering
Torii was founded in 2017 by Uri Haramati, Uri Nativ and Tal Bereznitskey. Its own company page gives 2016 as the start of work and April 2017 as the official launch. Israeli outlets describe it as an Israeli startup, and its 2019 seed announcement placed Torii Labs in Ra'anana. The company, however, lists its headquarters in New York, its press releases carry New York datelines, and it says its engineering roots are in Israel. Globes reported offices in both New York and Ra'anana.
The company has long split its work between the two countries. When Torii raised its Series A, it said it would use the money to grow engineering in Israel and commercial teams in the US.
The funding and a 2023 reset
Torii raised a $3.5 million seed round in May 2019 led by Uncork Capital, with Global Founders Capital and Entrée Capital. In February 2021 it raised a $10 million Series A led by Wing Venture Capital, and in February 2022 a $50 million Series B led by Tiger Global Management, with Wing, Global Founders Capital, Uncork, Entrée and Scopus Ventures also investing. That brought its total to $65 million. It did not disclose a valuation.
The company had 85 employees at the time of the Series B. In June 2023 it laid off 28 people, about 30% of a staff of roughly 95, after missing its first-half revenue target, citing macroeconomic uncertainty among its customers and a plan to reach profitability. Neither Torii nor Freshworks disclosed the current headcount or how much of the $65 million investors will recover in the sale.
