Freshworks Acquires Israeli Software Firm Torii
Translated & summarized from Calcalist by baba
American software company Freshworks is acquiring Israeli firm Torii, which specializes in enterprise software management. The deal aims to integrate Torii's platform into Freshworks' Freshservice system, enhancing IT and finance departments' ability to manage software, AI tools, and related expenses. Torii, founded in 2017, had previously raised $65 million and underwent layoffs in June 2023 due to unmet revenue targets. Both companies will continue to operate independently until the acquisition is complete.
The story in 5 lines · by baba
- Freshworks is acquiring Israeli software company Torii to enhance its service management platform.
- The acquisition aims to provide unified management of IT assets, software, and AI tools.
- Torii, founded in 2017, previously raised $65 million and had laid off 28 employees in June 2023.
- The deal's financial terms were not disclosed but are reportedly not significant.
- Both companies will continue to operate separately until the acquisition is finalized.
American software company Freshworks has signed an agreement to acquire Torii, an Israeli software firm that developed a platform for automated enterprise software management. The deal's value was not disclosed but is reportedly not significant. Torii CEO Ori Harmati announced the acquisition, explaining that the integration aims to combine Torii's capabilities with Freshworks' service management systems, particularly Freshservice. This merger will enable organizations to manage IT assets, services, and the usage of software and AI tools from a single location, addressing the issue of Shadow IT where employees use software without IT department oversight.
Torii, founded in 2017 by Harmati, Tal Barzenitzky, and Ori Nati, created a system that helps organizations discover software and cloud services used by employees, manage licenses and subscriptions, reduce costs, and control system access. Harmati noted that when they founded the company, many investors did not view enterprise software management as a distinct category.
Freshworks CEO and President Dennis Woodside stated that the acquisition will enhance Freshservice by extending its visibility to software and AI spending, allowing finance and IT departments to make unified decisions. He added that as AI becomes a critical infrastructure, Freshservice will be the platform for modern IT departments to manage it at scale.
Harmati further elaborated that Torii was built because IT, finance, and security departments often operated with incomplete information. He emphasized that integrating Torii's capabilities into Freshservice will close a significant blind spot rather than adding another dashboard.
Torii had previously raised $65 million in funding over several rounds, including a $3.5 million seed round in 2019, a $10 million Series A in 2021, and a $50 million Series B in 2022. In June 2023, the company laid off 28 employees, about 30% of its workforce, citing unmet revenue targets and economic uncertainty. Until the acquisition is finalized, Torii and Freshworks will continue to operate as separate entities, with no immediate changes expected for customers, integrations, or development plans.