Freshworks weighs acquisitions with $800m cash pile, AI in focus
- ByStartupStory | December 17, 2025
Freshworks, the Chennai-headquartered software company, is actively scouting acquisition targets with its $800 million cash pile, placing a strong emphasis on AI capabilities to drive future revenue growth.
CEO Dennis Woodside revealed that the firm has held discussions with around 50 potential partners over the past six months across Israel, Europe, the US, and India, particularly in AI and employee experience software. With $813 million in cash equivalents and marketable securities, Freshworks is positioned for meaningfully larger deals following its recent purchase of incident management platform FireHydrant and last year’s $230 million acquisition of IT management software Device42.
The company forecasts double-digit revenue growth over the next three years and prefers Indian targets to leverage its engineering base, where 80% of its 4,500 employees are located. Freshworks offers cloud-based solutions like Freshdesk for customer service and Freshservice for IT support, both infused with AI features, competing against giants such as Salesforce and ServiceNow.
This M&A push aligns with surging AI adoption fueling tech sector dealmaking, as global volumes rose 39% to $4.3 trillion in 2025 despite tariff uncertainties. Freshworks aims to bolster its offerings amid competition from AI-native startups disrupting traditional SaaS models.
Follow Startup Story
Related Posts
