Freshworks expects to close the deal by March 2026, subject to customary closing conditions
Founded in 2018, US-based FireHydrant’s AI stack helps enterprises automate and streamline response to software outages and reliability issues
On the financial front, Freshworks managed to slash its consolidated net loss by 84.4% YoY to $4.7 Mn in Q3 2025, while revenues rose 15.3% YoY to $215.1 Mn
Nasdaq-listed SaaS major Freshworks has signed a definitive agreement to acquire AI-powered incident management platform FireHydrant for an undisclosed amount.
In a statement, Freshworks said that the deal will combine its expertise in IT service management and Firehydrant’s incident management to build an AI-native solution for preventing disruptions and ensuring service reliability.
Founded in 2018 by Robert Ross and Dylan Nielsen, US-based FireHydrant’s AI stack helps enterprises automate and streamline response to software outages and reliability issues. Its offerings include alerting the right people, coordinating responses, automating post-incident learnings and improving system reliability through processes and analytics.
FireHydrant’s customers include names such as Palo Alto Networks, BP, and Qlik.
“With this acquisition, Freshworks will combine its strengths of IT management with Firehydrant’s incident management – connecting visibility, response, and learning to usher the new generation of AI-first incident management over older systems,” added Freshworks in a statement.
This is the listed SaaS major’s second major acquisition in the past year. In June 2024, it acquired US-based IT asset management platform Device42 for $230 Mn in a cash and equity deal.
Founded in 2010 by Girish Mathrubootham and Shanmugam Krishnasamy, Freshworks offers a suite of cloud-based software to help companies manage customer engagement, sales, IT service management and marketing.
The company went public in September 2021, making its debut on the Nasdaq. Since its listing, the company has seen a number of changes, including a major reshuffle at the top level and an increased focus on AI.
Cofounder Mathrubootham transitioned to the role of the company’s executive chairman from CEO in 2024`. Subsequently, in September this year, Mathrubootham announced that he would be exiting the company, effective December 1. He is stepping away to focus on his new VC fund, Together Fund.
