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 funding round co-led by Ideaspring Capital and Yali Capital. The funds will be used to strengthen its proprietary migration models and accelerate expansion across India and worldwide. Founded in 2024, LatentForce is building an Agentic AI platform for large-scale 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 assisting individual developers, LatentForce is building specialised AI systems for large-scale enterprise modernisation. The company leverages efficient, task-specific Small Language Models (SLMs) purpose-built for legacy transformation, enabling organisations to upgrade decades-old software with higher accuracy, security, and control. By reducing the cost, risk, and time required for large migrations by up to 80%, LatentForce makes enterprise transformation commercially viable at a scale that was previously impractical.

Aravind Jayendran, Founder and CEO of LatentForce, said, "Most enterprises today are constrained by decades of accumulated technical debt. Code migration is not just a coding problem; it is fundamentally a system transformation challenge. At LatentForce, we are building the default enterprise platform for eliminating legacy tech debt through AI-driven modernisation."

Reflecting on the deeper philosophy behind modernisation, Prathosh A P, Assistant Professor at IISc Bangalore and Co-founder of LatentForce, incubated at FSID, IISc, added, "For us, 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. What excites me personally is the plethora of hard technical challenges this area brings in."

Speaking on execution at scale, Vinay Kyatham, Co-founder and CTO of LatentForce, said, "Enterprise migration projects fail not because of lack of intent, but because of loss of engineering control at scale. We built LatentForce to give teams deterministic pipelines, security by design, and the ability to modernise mission-critical systems with confidence rather than guesswork."

"Ideaspring Capital is excited to be a part of LatentForce AI's journey in transforming enterprise code modernisation. A vertically integrated AI platform that combines custom LLMs with deep graph engines will bring a paradigm shift to the $5 trillion legacy code market. With enterprises needing absolute control and compliance, LatentForce's audit-ready approach will surely pave the way for reliable, non-mainframe migrations at scale. Prathosh, Aravind, and Vinay bring a unique blend of deep-tech research and industry experience that bodes great for LatentForce", added Naganand Doraswamy, Managing Partner, Ideaspring Capital.

Yali Capital's Ganapathy Subramaniam, said, "AI-first deep-tech is central to Yali's investment thesis, and LatentForce is a standout example of how specialised systems can deliver at enterprise scale. Aravind, Vinay and Prathosh bring exceptional depth in applied research and engineering. We're excited to partner with them as they scale this category-defining technology."

The company is already seeing encouraging traction by means of interest from enterprises and is currently used by developers across BFSI and SaaS enterprises in India and the US, helping overhaul highly critical and sensitive codebases.

About LatentForce

LatentForce is a Bengaluru-based deep-tech company building AI systems for enterprise code migration and software modernisation. Its platform enables organisations to transform legacy codebases into modern architectures using proprietary models, structured migration pipelines, and verification systems. LatentForce focuses on high-stakes upgrades and use cases where accuracy, scalability, and engineering control are non-negotiable.

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