Freshworks Signs Definitive Agreement to Acquire Torii, Betting Big on AI Spend Governance

The Indian-origin SaaS major Freshworks has signed a definitive agreement to acquire Torii, a SaaS management platform, as it expands its IT Service Management capabilities beyond ticketing into software and AI spend governance. The announcement was made on October 12, 2026, and the acquisition is expected to close in Freshworks' fourth fiscal quarter of 2026, subject to customary closing conditions. Deal value was not disclosed.

Torii gives businesses visibility into applications, AI projects, spend, licences and users. Crucially, it tracks AI consumption to the token, attributing it to the people and teams driving it, so IT teams can charge it back, set limits and catch spikes.

Freshworks said the combination of Torii alongside its ITSM offering Freshservice will bring a company's full technology inventory, usage and spend into one place. Dennis Woodside, CEO and President of Freshworks, said Freshservice already gives IT one place to see everything it runs, and with Torii that same view now extends to software and AI spend. Uri Haramati, CEO of Torii, said the acquisition addresses the blind spot where IT, finance and security each worked off a different partial picture.

The deal lands as enterprises scramble to control exploding AI tool spend. For Indian SaaS founders, the message is clear: ITSM platforms are no longer just about helpdesk tickets — AI spend governance is becoming core infrastructure, and consolidation in this layer is accelerating.