U.S. software company Freshworks (FRSH.O) is exploring acquisitions, including AI firms, backed by over $800 million in cash. CEO Dennis Woodside told BanerClub the company aims to boost revenue in the coming years.
The acquisition push follows a surge in AI adoption, which is driving deals across the tech sector. Global M&A volumes rose 39% to $4.3 trillion in 2025, according to J.P. Morgan, despite U.S. tariff uncertainties.
Woodside said Freshworks has been evaluating AI and employee experience software targets. The company has held discussions with potential partners in Israel, Europe, the U.S., and India. “I probably spoke with 50 companies in the last six months,” he said.
Founded in Chennai, India, Freshworks provides cloud-based software like Freshdesk for customer service and Freshservice for IT support. Both products incorporate AI. Freshworks competes with Salesforce (CRM.N) and ServiceNow (NOW.N).
All of Freshworks’ engineering teams are based in India, which makes up 80% of its 4,500 employees. Woodside said the company prefers acquisitions in India for easier integration.
The company expects double-digit revenue growth for the next three years. On Monday, it announced plans to acquire incident management platform FireHydrant, following last year’s $230 million purchase of IT management software Device42.
Freshworks has $813.2 million in cash, cash equivalents, and marketable securities, giving it capacity for larger deals. However, it did not disclose target deal sizes.
AI-native startups are disrupting the SaaS market with more personalized tools. Funding for Indian SaaS startups rose slightly to $1.8 billion in 2024, up from $1.3 billion in 2023, but it remains below the $4.4 billion raised in 2022.
Woodside said Freshworks will continue hiring in India, especially in engineering, product development, and design. He also plans to add engineers to future acquisitions, though he did not give specific numbers.
