{
  "id": 14509596,
  "title": "Freshworks to buy Torii to track SaaS and AI spending",
  "url": "https://urgent.news/2026/10/14/freshworks-to-buy-torii-to-track-saas-and-ai-spending",
  "topic": "ai",
  "section": "AI",
  "published": "2026-10-14T18:32:48.000Z",
  "source": {
    "name": "Dev.to",
    "slug": "dev-to",
    "url": "https://dev.to/techaiwire/freshworks-to-buy-torii-to-track-saas-and-ai-spending-n99"
  },
  "original_language": "en",
  "account": "Freshworks has agreed to acquire Torii, a startup specializing in tracking software and AI tools used by companies, along with their associated costs. The deal was confirmed on October 12, 2026, though the exact purchase price remains undisclosed. Freshworks anticipates the acquisition to conclude in the fourth quarter of its 2026 fiscal year.\n\nThe acquisition is driven by the growing complexity of AI tools, which are often billed based on usage, making traditional manual tracking methods impractical for IT teams. Freshworks, listed on Nasdaq, has signed a definitive agreement to purchase Torii. Torii's software will be integrated into Freshworks' IT service management product, Freshservice, enhancing its capabilities for IT service tracking.\n\nCalcalist describes the acquisition as relatively minor, though it notes that the deal's finalization will depend on standard contractual conditions. Dennis Woodside, Freshworks CEO, emphasized the increasing need for IT teams to have greater oversight over business expenses, despite reduced visibility into costs. Uri Haramati, Torii's CEO, highlighted the challenges that IT leaders face in managing and controlling the increasing number of AI tools in use by their organizations.\n\nTorii provides a platform for SaaS (Software as a Service) management, identifying the software and AI tools utilized by companies and linking each to its users, owners, and financial expenditure. It also automates tasks such as managing licenses and subscriptions. One of its primary focuses is on \"shadow IT,\" which refers to software used by employees without the approval of the IT department. Additionally, Torii monitors AI usage down to the token level, assigns usage to individuals and teams, and forecasts future expenditures. It offers features like setting spending limits and flagging sudden increases in usage.\n\nTorii has been recognized for its leadership in the 2026 Magic Quadrant for SaaS Management Platforms by Gartner, marking the third consecutive year in this position. Among Torii's clients are companies like Hearst, Groupon, and Koch. The startup was founded in 2017 by Uri Haramati, Uri Nativ, and Tal Bereznitskey, and has secured funding totaling $65 million through various rounds. Most recently, it raised $50 million in Series B funding in February 2022 from Tiger Global Management. The company has experienced a reduction in its workforce, with about 30% of its employees laid off in June 2023 following missed revenue targets.\n\nUntil the deal's completion, Torii will continue to operate independently, with no immediate changes for its customers. Their existing setups, integrations, workflows, support arrangements, renewal terms, and product roadmap will remain unaffected. Following the acquisition, Torii's tools will be integrated into Freshservice's service desk, asset management, and configuration database, which serves as a comprehensive record of all IT systems managed by the company. Freshworks plans to provide further updates post-acquisition.\n\nFreshworks recently reported a 16% increase in revenue to $237.4 million for the quarter ending in June 2026, with a net profit of $3.2 million, compared to a net loss of $1.7 million the previous year. Additionally, the company reduced its workforce by about 11%, cutting around 500 positions earlier this year. This acquisition is poised to offer significant benefits for businesses utilizing or paying for AI tools, as it will enable more precise tracking and management of AI spend, helping to identify and address the use of unapproved software.",
  "summary": "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…",
  "key_points": [
    "Freshworks acquires Torii for $ undisclosed on Oct 12, 2026",
    "Integration of Torii's software into Freshworks' IT service management",
    "Torii aids in tracking AI tool spending, addressing shadow IT challenges"
  ],
  "editors_take": null,
  "illustration": null,
  "coverage": {
    "outlets": 1,
    "also_reported_by": []
  },
  "ai_generated": true,
  "disclaimer": "Summaries, key points and the editor’s take are written by software from other outlets’ reporting and may contain errors — always check the linked original."
}