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.
News Market Reaction 5 Alerts
On the day this news was published, FRSH gained 1.28%, reflecting a mild positive market reaction. Our momentum scanner triggered 5 alerts that day, indicating moderate trading interest and price volatility. This price movement added approximately $41M to the company's valuation, bringing the market cap to $3.22B at that time. Trading volume was elevated at 2.7x the daily average, suggesting notable buying interest.
Data tracked by StockTitan Argus on the day of publication.
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
"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
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
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