Freshworks Expands Enterprise Service Management to Power All Business Functions

Rhea-AI Summary

Freshworks (NASDAQ: FRSH) announced on Nov 5, 2025 that Freshservice for Business Teams is now available as a standalone product, removing the prior requirement for an existing Freshservice ITSM deployment. The add-on doubled its annual recurring revenue in the past year to over $35 million as of Sept 30, 2025 and is used by roughly 1 in 4 eligible Freshservice ITSM customers. The product targets HR, Finance, Legal and other non-IT functions with AI-driven automation, ready workflows, and integrations for faster deployment and unified employee service delivery.

Positive

• ARR doubled to >$35 million as of Sept 30, 2025
• Now available as a standalone product removing ITSM prerequisite
• Adoption rate: 1 in 4 eligible Freshservice ITSM customers
• Databricks reported a 23% self-service deflection after deployment

Negative

• None.

Insights

SaaS product and go-to-market strategist

Freshworks made its ESM add-on standalone and reported Freshservice for Business Teams doubled ARR to over $35 million as of September 30, 2025.

Making Freshservice for Business Teams available as a standalone product removes a deployment prerequisite and broadens addressable customers beyond existing ITSM users. The announcement cites concrete commercial traction — one in four eligible ITSM customers adopt the add-on and ARR doubled to over $35 million — which signals viable demand and product-market fit for non-IT functions such as HR, Finance and Legal.

Risks and dependencies include continued uptake outside existing customers, execution on integrations and AI features, and preserving multi-department security and governance at scale; these elements determine whether expansion translates into sustained revenue growth. Key items to watch over the next 6–18 months are adoption rates in net-new accounts versus conversions within the ITSM base, retention and expansion metrics for deployed non-IT departments, and measurable outcomes from cited customers (for example the reported 23% deflection at Databricks).

Freshservice for Business Teams has doubled in ARR as an add-on to Freshservice ITSM and is now available as an independent product for non-IT functions

SAN MATEO, Calif., Nov. 05, 2025 (GLOBE NEWSWIRE) -- Freshworks Inc. (NASDAQ: FRSH), today announced that Freshservice for Business Teams is now available as a standalone product, no longer requiring an existing Freshservice IT Service Management (ITSM) implementation. The move provides businesses more options to accelerate uninterrupted service delivery to HR, Finance, Legal and other teams, allowing non-IT departments to streamline complex processes and deliver consistent, personalized employee experiences.

According to the latest Freshservice Benchmark Report, the enterprise service management (ESM) solution’s reach is rapidly expanding into other functions, with one out of four eligible Freshservice ITSM customers utilizing Freshservice for Business Teams. The product has doubled its annual recurring revenue in the past year, reaching over $35 million as of September 30, 2025.

"Business leaders need to move fast, but keep getting stuck with tools that were never designed for departments like HR, Finance or Legal. That friction slows growth and is especially true with cross-functional work,” said Srini Raghavan, Chief Product Officer at Freshworks. “Now businesses have another option. Enabling non-IT workers to create their own support environments is a force multiplier that can benefit the entire organization by enabling workers closest to business processes to create the employee experiences they want and need.”

Key benefits of Freshservice for Business Teams for all departments include:

People-First AI for Business Teams
Non-IT functions can use AI to accelerate ticket resolutions and improve efficiency by automating key processes like account verification, or retrieving necessary documents to fulfill requests. AI can further support agents by generating quality responses, summaries and balancing workloads. University of Oxford chose Freshservice and Freddy Copilot for its simplicity and ability to scale with the university's ITSM needs across IT, finance and HR teams.

Unified Service Delivery
Capabilities were built to connect fragmented tools, data, and workflows, to help organizations scale service delivery to other departments efficiently. Databricks, for example, achieved a 23% deflection rate after implementing self-service and expanded deployment of Freshservice to eight other departments, including HR, Legal, and Learning and Development. Pradeep Singh, VP of Infrastructure and Operations at Databricks, said, “Consolidating from 10 different platforms down to a single intuitive one has not only improved employee experience, it has saved us a significant amount of money.”

Rapid Impact for HR and Employee Support
Journeys, prebuilt Workspaces, and workflow templates simplify complex processes like employee onboarding and offboarding, accelerating adoption without the need for heavy customization or building from the ground up. Without having to design and map each workflow from scratch, Coherent, with 25,000 employees, uses the platform to support HR-related needs and requests. In addition to improving the new-hire experience, Freshservice simplified employee offboarding by bringing HR compliance data under one roof. Anantha Ganga, CIO of Coherent, said, “We're excited to integrate Freshservice with even more systems. Our ultimate goal is to create a ‘one-stop shop’ for the employee experience. Freshservice will remain a central component of our strategy for achieving this.”

Seamless Configuration for Fast Deployment
The intuitive UI and no-code automation empower teams without technical resources to launch secure employee service portals. Built-in data protection, governance, delegated administration, and cross-functional integrations with ADP, DocuSign, Microsoft Teams, Slack, Bamboo HR and Workday reduce the complexity of launching and maintaining services. EDF Renewables chose Freshservice because of its ease of use, seamless integrations, and codeless customization. They are leveraging workspaces within Freshservice to manage departments outside of IT, such as facilities, ensuring each department has a tailored environment to operate in.

Freshservice for Business Teams provides a superior alternative to costly IT suites or limited HR tools, offering powerful orchestration, enterprise grade AI capabilities, fast time-to-value, and low total cost of ownership. It helps non-IT departments rapidly change slow, fragmented processes into unified employee experiences with AI capabilities that put people-first.

“Improved employee experiences are one of the top priorities for organizations these days, as are related goals like improved resolution times for requests and issues.” said Snow Tempest, Research Manager at IDC. “For organizations seeking to streamline their processes and reduce complexity without extensive customization requirements, there is a demand for a product that can be deployed quickly to meet the needs of multiple departments.”

To learn more about Freshservice for Business Teams, or how its modern, AI-powered employee-service solutions can increase efficiency and improve engagement for your business, visit www.freshworks.com.

About Freshworks
Freshworks Inc. builds uncomplicated service software that delivers exceptional customer and employee experiences. Our enterprise-grade solutions are powerful, yet easy to use, and quick to deliver results. Our people-first approach to AI eliminates friction, making employees more effective and organizations more productive. Nearly 75,000 companies, including Bridgestone, New Balance, Nucor, S&P Global, and Sony Music, trust Freshworks’ customer experience (CX) and employee experience (EX) software to fuel customer loyalty and service efficiency. For the latest company news and customer stories, visit www.freshworks.com and follow us on Facebook, LinkedIn, and X.

© 2025 Freshworks Inc. All Rights Reserved. Freshworks, Freshservice, Freshservice for Business Teams and any associated logo are trademarks of Freshworks Inc. All other company, brand and product names may be trademarks or registered trademarks of their respective companies. Nothing in this press release should be construed to the contrary, or as an approval, endorsement or sponsorship by any third parties of Freshworks Inc. or any aspect of this press release.

Kevin Cheng
Contact: PR@freshworks.com

FAQ

What did Freshworks announce about Freshservice for Business Teams on Nov 5, 2025 (FRSH)?

Freshservice for Business Teams is now offered as a standalone product and no longer requires Freshservice ITSM.

How large is Freshservice for Business Teams' ARR as of Sept 30, 2025 for FRSH?

Annual recurring revenue exceeded $35 million as of Sept 30, 2025.

What adoption metric did Freshworks report for Freshservice for Business Teams (FRSH)?

About 1 in 4 eligible Freshservice ITSM customers are using Freshservice for Business Teams.

Which non-IT departments can use Freshservice for Business Teams (FRSH)?

The product targets HR, Finance, Legal and other business functions to streamline processes and employee service.

What measurable customer outcome did Databricks report after expanding Freshservice (FRSH)?

Databricks achieved a 23% deflection rate after implementing self-service and expanding Freshservice.

How does Freshservice for Business Teams speed deployment for non-IT teams (FRSH)?

It uses no-code automation, prebuilt journeys and workflow templates plus integrations to launch secure portals quickly.