Bengaluru: LatentForce, an AI-native platform specialising in large-scale enterprise code migration and software modernisation, has raised $1.7 million in a Seed funding round co-led by Ideaspring Capital and Yali Capital.
The investment will enable LatentForce to strengthen its proprietary migration models and accelerate expansion across India and global markets.
Founded in 2024, LatentForce is developing an agentic AI-driven platform designed to modernise enterprise software systems at scale.
The company operates in a market estimated at $22.7 billion, which is projected to grow beyond $50 billion by 2031, driven by increasing demand for legacy system transformation.
Also Read: Tracxn India Tech Annual Funding Report 2025: Indian Startups Raise USD 10.5B, Rank 3rd Globally
LatentForce Focuses on AI-Native Enterprise Modernisation
Unlike conventional AI coding tools that cater primarily to individual developers, the company builds specialised AI systems tailored for enterprise-wide software modernisation.
The platform leverages task-specific Small Language Models (SLMs) developed specifically for legacy system transformation, enabling organisations to modernise decades-old software with improved accuracy, security, and operational control.
According to the company, this approach can reduce migration cost, risk, and time by up to 80%.
Aravind Jayendran, Founder and CEO of LatentForce, said that enterprise software migration extends beyond code rewriting. He noted that long-standing technical debt remains a key constraint for organisations, and the platform aims to address this through AI-driven system-level transformation.
Prathosh A P, Assistant Professor at IISc Bangalore and Co-founder of LatentForce, which is incubated at FSID, IISc, highlighted the conceptual foundation of the platform. He stated that modernisation involves preserving the original intent and embedded knowledge of legacy systems while transitioning them into future-ready architectures.
Vinay Kyatham, Co-founder and CTO of LatentForce, emphasised the importance of execution at scale in enterprise migrations.
He said that failures often stem from loss of engineering control rather than lack of intent, and that the platform focuses on deterministic pipelines and security-by-design to modernise mission-critical systems with reliability.
Also Read: Quintrans Raises USD 750K Pre-Seed Funding Led by Capital-A
Naganand Doraswamy, Managing Partner at Ideaspring Capital, said the firm is backing LatentForce for its vertically integrated AI platform that combines custom large language models with deep graph engines.
He added that LatentForce’s audit-ready approach addresses enterprise requirements for control, compliance, and reliable large-scale migrations.
Ganapathy Subramaniam of Yali Capital said the investment aligns with the firm’s focus on AI-first deep-tech innovation. He noted that LatentForce demonstrates how specialised AI systems can deliver enterprise-scale outcomes, supported by the founding team’s expertise in applied research and engineering.
