8 months ago
Freshworks AI Revenue Grows, Expands with FireHydrant Acquisition
Freshworks, a company that makes software for businesses, is doing really well with its AI features.
They have 75,000 customers in total, and 6,000 of them are paying for AI tools.
These tools help businesses with things like customer service and managing IT problems.
Freshworks recently bought another company called FireHydrant to help IT teams work better together.
The CEO, Dennis Woodside, says that AI is also helping Freshworks write code faster and improve their products.
They make money from AI in different ways, like charging per use or adding it to higher-priced plans.
The company is excited about the future and thinks AI will make their software even more valuable.
Freshworks has 6,000 out of 75,000 customers paying for AI features, generating over $20 million in annual recurring revenue.
The company acquired FireHydrant to expand into IT operations management and better serve upmarket clients.
AI helps Freshworks write 40% of its code and accelerate product launches.
Freshworks plans to integrate FireHydrant with its existing Freshservice platform to offer a more comprehensive solution.
The CEO dismisses concerns about vibe coding disrupting the SaaS model, emphasizing the reliability and integration of established software services.
- Who
- Freshworks, CEO Dennis Woodside
- What
- AI revenue growth and FireHydrant acquisition
- Where
- Global, with operations in Chennai, Bengaluru, and the US
- When
- December 16, 2025
- Why
- To expand into IT operations management and enhance product offerings
Key facts
- AI Customers
- 6,000
- Total Customers
- 75,000
- AI Annual Recurring Revenue
- $20 million
- Code Written by AI
- 40%
- Acquired Company
- FireHydrant
- Freshservice Customers
- 20,000
- AI Products
- AI agents, Copilot, AI Insights
- Pricing Models
- Per session, per seat, bundled
Quotes
Dennis Woodside
CEO and President of Freshworks
“Our pricing varies depending on what product you’re buying. If you’re buying our AI agent - the product that answers employee or customer questions directly - you pay on a per session basis, and a session is an interaction through chat or through a portal over 24 hours between an employee or a customer and the software. For Copilot, we charge an additional price per seat for the agent themselves. And then some of our products like AI Insights, which is for managers, we just bundle into the higher price plan. We have different ways of monetising and we’re excited about how all of them work together to deliver value for the customers.”
thehindubusinessline.com
“Out of our 75,000 total customers across Customer Experience and Employee Experience, 6,000 customers are paying us for AI. We added over a thousand new customers in Q3 alone, and the ARR from our AI products is well over $20 million today. We have introduced AI agents for specific industries like e-commerce, travel, retail, and logistics. Copilot is another product that is very popular especially among the larger clients. That said, a lot of the effort here in Chennai, Bengaluru, and in the US amongst our sales teams is to educate our existing customers on AI capabilities that we have, and get them comfortable with moving to AI.”
thehindubusinessline.com





