LatentForce, an AI-native platform focused on large-scale enterprise code migrations and software modernisation, has raised $1.7 million in seed funding in a round co-led by Ideaspring Capital and Yali Capital. The company said it will use the new capital to strengthen its proprietary migration models and accelerate expansion across India and international markets as enterprises confront mounting technical debt and aging systems that are costly to maintain and difficult to secure.
Founded in 2024, LatentForce is positioning its platform as purpose-built infrastructure for transforming legacy software estates rather than providing general AI coding assistance. The company is developing agentic AI workflows designed to manage end-to-end migration programs, including refactoring and rewriting components, validating outputs, and enforcing governance controls expected in regulated enterprise environments. LatentForce said its approach relies on task-specific small language models optimized for legacy transformation, aiming to improve accuracy, security, and controllability for complex multi-application migrations.
LatentForce is targeting enterprise modernisation programs that often span years and require coordinated changes across codebases, dependencies, documentation, and operational processes. The company estimates the software modernisation market at $22.7 billion today and projects it could exceed $50 billion by 2031, driven by the need to upgrade mission-critical systems, reduce risk, and move from legacy environments to modern stacks.
The founding team includes Aravind Jayendran, founder and CEO, Vinay Kyatham, founder and CTO, and Dr Prathosh A P, founder and head of research. The company said it is building deterministic, audit-ready migration pipelines intended to reduce program risk and improve repeatability for large organizations, particularly where compliance and traceability are required. Investors said the platform’s combination of specialized AI systems and enterprise controls is designed to address a persistent gap in migration initiatives, where scale and complexity can erode oversight and increase the probability of failure.
KEY QUOTES:
“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.”
Aravind Jayendran, Founder and CEO of LatentForce
“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.”
Prathosh A P, Assistant Professor at IISc Bangalore and Co-founder of LatentForce, incubated at FSID, IISc
“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.”
Vinay Kyatham, Co-founder and CTO of LatentForce
“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,”
Naganand Doraswamy, Managing Partner, Ideaspring Capital
“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.”
Ganapathy Subramaniam of Yali Capital
