Archive · 19 Dec 2025
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
- When
- December 16, 2025
- Where
- Global, with operations in Chennai, Bengaluru, and the US
- Why
- To expand into IT operations management and enhance product offerings
- 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
