LatentForce Secures $1.7M Seed Funding to Propel AI-Driven Software Modernisation
BENGALURU, India, Dec. 19, 2025 /PRNewswire/ — LatentForce, an innovative platform focused on large-scale enterprise code migration and software modernisation, has successfully raised $1.7 million in a Seed funding round co-led by Ideaspring Capital and Yali Capital.
This infusion of capital aims to bolster its proprietary migration methodologies and catalyse its expansion efforts both within India and internationally.
Established in 2024, LatentForce is developing an agentic AI platform tailored for enterprise code migrations and comprehensive software transformations—a sector valued at approximately $22.7 billion today, with forecasts suggesting growth beyond $50 billion by 2031.
Distinct from conventional AI coding tools that cater predominantly to individual developers, LatentForce focuses on creating specialised AI systems tailored for extensive enterprise modernisation initiatives.
Employing task-specific Small Language Models (SLMs) engineered for legacy transformation, the platform empowers organisations to modernise decades-old software with remarkable accuracy, security, and oversight—thereby diminishing migration costs, risks, and durations by as much as 80%.
Aravind Jayendran, the Founder and CEO of LatentForce, articulated, Many enterprises are encumbered by years of technical debt. Code migration transcends mere coding; it represents a challenge of systemic transformation.
At LatentForce, we’re devising the quintessential enterprise platform to obliterate legacy tech debt through AI-enhanced modernisation.
Expounding upon the underlying philosophy of modernisation, Prathosh A P, Assistant Professor at IISc Bangalore and Co-founder of LatentForce, incubated at FSID, IISc, remarked, “Modernisation is not merely about rewriting code; it signifies the continuity of purpose—preserving the wisdom of the past while seamlessly integrating it into the fabric of future architecture without distortion.”
Discussing the challenges of execution at scale, Vinay Kyatham, Co-founder and CTO of LatentForce, stated, Enterprise migration endeavours fail not due to a lack of intent, but rather from the erosion of engineering control at scale.
LatentForce offers deterministic pipelines and incorporates security by design, modernising mission-critical systems with a level of confidence previously unattainable.
Ideaspring Capital is thrilled to support LatentForce, whose vertically integrated AI platform merges customised LLMs with advanced graph engines to instigate a significant shift in the $5 trillion legacy code market.
As enterprises demand increased control and compliance, LatentForce’s audit-ready methodology facilitates dependable, non-mainframe migrations at scale,” stated Naganand Doraswamy, Managing Partner at Ideaspring Capital.
Ganapathy Subramaniam from Yali Capital remarked, “AI-centric deep technology lies at the heart of Yali’s investment strategy, and LatentForce epitomises the potential of specialised systems to deliver solutions at an enterprise scale.
With Aravind, Vinay, and Prathosh’s extensive expertise in applied research and engineering, we eagerly anticipate collaborating with them as they scale this groundbreaking technology.”
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