LatentForce Raises $1.7M Seed Co-Led by Ideaspring Capital and Yali Capital to Accelerate Agentic AI-Driven Enterprise Software Modernisation

BENGALURU, India, Dec. 19, 2025 /PRNewswire/ — LatentForce, an AI-native platform for large-scale enterprise code migrations and software modernisation, has raised $1.7M in a Seed round co-led by Ideaspring Capital and Yali Capital. The funding will strengthen its proprietary migration models and accelerate expansion across India and globally. Founded in 2024, LatentForce is building an agentic AI platform for enterprise code migrations and software overhauls, a market estimated at US$22.7 billion today and projected to exceed US$50 billion by 2031.

While most AI coding tools focus on individual developers, LatentForce builds specialised AI systems for large-scale enterprise modernisation. Using task-specific Small Language Models (SLMs) purpose-built for legacy transformation, the platform enables organisations to upgrade decades-old software with greater accuracy, security, and control, reducing migration cost, risk, and time by up to 80%.

Aravind Jayendran, Founder and CEO of LatentForce, said, “Most enterprises are constrained by decades of technical debt. Code migration is not just a coding problem but a system transformation challenge. At LatentForce, we are building the default enterprise platform to eliminate legacy tech debt through AI-driven modernisation.”

Reflecting on the philosophy behind modernisation, Prathosh A P, Assistant Professor at IISc Bangalore and Co-founder of LatentForce, incubated at FSID, IISc, said, “Modernisation is not just rewriting code; it is continuity of intent—carrying forward the wisdom of the past into the architecture of the future without distortion.”

Speaking on execution at scale, Vinay Kyatham, Co-founder and CTO of LatentForce, said, “Enterprise migration projects fail not due to lack of intent, but loss of engineering control at scale. LatentForce provides deterministic pipelines, security by design, and modernises mission-critical systems with confidence rather than guesswork.”

“Ideaspring Capital is excited to back LatentForce, whose vertically integrated AI platform combines custom LLMs with deep graph engines to drive a paradigm shift in the $5 trillion legacy code market. With enterprises demanding control and compliance, LatentForce’s audit-ready approach enables reliable, non-mainframe migrations at scale,” said Naganand Doraswamy, Managing Partner, Ideaspring Capital.

Ganapathy Subramaniam of Yali Capital, said, “AI-first deep tech is central to Yali’s investment thesis, and LatentForce exemplifies how specialised systems can deliver at enterprise scale. Aravind, Vinay, and Prathosh bring deep expertise in applied research and engineering, and we’re excited to partner with them as they scale this category-defining technology.”

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SOURCE LatentForce Intelligence