US-based software firm Freshworks is actively exploring acquisitions to strengthen its artificial intelligence and product portfolio, supported by a cash reserve of more than $800 million. Chief Executive Officer Dennis Woodside said the company is looking at potential deals to accelerate revenue growth over the next few years, with artificial intelligence remaining a central theme of its strategy.
The acquisition push comes at a time when AI adoption is reshaping the global technology landscape and driving a surge in mergers and acquisitions. According to data cited by JP Morgan, worldwide deal activity rose by 39 percent in 2025 to nearly $4,300,000 million, despite market uncertainty linked to US trade policies. Freshworks believes this environment presents opportunities to acquire innovative companies that can strengthen its competitive position.
Woodside said Freshworks has been evaluating a wide range of targets, particularly in AI-driven solutions and employee experience software. Over the past six months, the company has held discussions with nearly 50 potential acquisition candidates across Israel, Europe, the United States, and India. He noted that India is an especially attractive market due to its deep talent pool and the company’s existing operational footprint.
Founded in Chennai, Freshworks provides cloud-based software products such as Freshdesk for customer support and Freshservice for IT management, both of which already integrate AI capabilities. The company competes with global enterprise software players while positioning itself as a more agile and customer-focused alternative.
India plays a central role in Freshworks’ operations. Around 80 percent of its total workforce of approximately 4,500 employees is based in the country, and all of its engineering teams operate from India. Woodside said the company would prefer its next acquisition to be India-based, as this would allow for faster integration and closer collaboration with existing teams.
Freshworks recently announced the acquisition of incident management platform FireHydrant. This followed its purchase of IT management software company Device42 for $230 million in the previous year. With cash, cash equivalents, and marketable securities totaling about $813.2 million, the company said it has the financial capacity to pursue significantly larger deals, although it has not disclosed specific target sizes.
The company expects double-digit percentage revenue growth over the next three years, driven by organic expansion and strategic acquisitions. At the same time, AI-native startups are increasingly challenging traditional software-as-a-service companies with more personalized and intelligent tools, making timely acquisitions critical.
Freshworks also plans to continue hiring in India, particularly for engineering, product development, and design roles. New hires are expected to support both existing products and future acquisitions, reinforcing India’s importance in the company’s long-term growth and innovation strategy.
