Freshworks is intensifying its focus on large enterprises and mid-market companies while scaling up artificial intelligence deployment across its products, according to CEO Dennis Woodside speaking at the World Economic Forum Annual Meeting in Davos on 22 January 2026. The company's strategic pivot comes as AI fundamentally transforms how its 75,000 customers operate, enabling customer support and IT teams to achieve faster and more efficient performance.

AI Adoption Drives Customer Efficiency

Woodside emphasized that ease of use and faster time-to-value remain key differentiators for Freshworks in the competitive enterprise software market. The company currently serves over 6,000 customers who are paying for AI capabilities, demonstrating strong market adoption of its AI-powered solutions.

In November, Freshworks launched an agentic suite comprising prebuilt AI agents tailored for four industries. Woodside reported strong uptake, with customers successfully deflecting 50-60% of inbound queries through AI implementation. Notably, AI-driven interactions are delivering higher customer satisfaction compared to human-only support while simultaneously freeing employees to focus on complex, higher-value tasks.

Internal AI Implementation and Revenue Growth

Internally, Freshworks has deployed more than 70 AI tools, incorporating both proprietary and third-party solutions. The company utilizes AI across multiple operational areas including customer support, employee queries, and recruitment processes, where it helps screen nearly 10,000 resumes received each week. According to Woodside, this widespread AI adoption has contributed to improved profitability and faster revenue growth.

Some customers have successfully repurposed AI agents into revenue-generating sales tools, demonstrating the versatility and business value of Freshworks' AI solutions beyond traditional support functions.

Enterprise Focus and Financial Targets

Freshworks is pivoting further toward larger enterprises, with mid-market and enterprise clients—defined as companies with 500 to 20,000 employees—now accounting for around 50% of total revenue. The company's client portfolio includes prominent firms such as Tata Consumer, Mahindra & Mahindra, and New Balance.

Woodside revealed that Freshworks generated $20 million in direct AI-related revenue in Q3 from a business built largely over the past 18 months. The company has set an ambitious target of growing this AI revenue stream to $100 million over the next three years. Overall, Freshworks aims to reach $1.3 billion in total revenue over the same period while continuing to expand cash flow margins, which stood at approximately 26% in the most recent quarter.

Source: https://www.cnbctv18.com/technology/freshworks-says-ai-is-taking-over-routine-office-work-freeing-people-to-focus-on-harder-tasks-ws-l-19826773.htm

Freshworks, a leading software company, is set for a significant leadership transition as founder Girish Mathrubootham announces his decision to step down from his role as Executive Chairman. The change is scheduled to take effect on December 1, 2025, marking the end of Mathrubootham's tenure at the helm of the company he founded.

Leadership Transition

Mathrubootham communicated his decision to the board on September 3, 2025, expressing his intention to focus on his role with Together Fund, a venture fund he co-founded. The board has appointed Roxanne Austin, who has served as the Lead Independent Director since May 2021, to succeed Mathrubootham as the new Chairperson of the Board.

Company Performance

The announcement comes at a time when Freshworks is showing strong financial performance. For the quarter ending June, the company reported:

The significant reduction in operating losses, narrowing by nearly 80% year-over-year, indicates improved operational efficiency and a path towards profitability.

Smooth Transition

Freshworks has emphasized that this leadership change involves no operational discord or strategic disagreements. The planned transition, set to occur over a year from now, suggests a well-thought-out succession strategy aimed at ensuring continuity in the company's vision and operations.

As Freshworks prepares for this new chapter, the tech industry will be watching closely to see how the company evolves under new leadership while building on the foundation laid by its founder. The transition also highlights the growing trend of successful tech entrepreneurs stepping back from operational roles to focus on venture funding and supporting the broader startup ecosystem.