LatentForce is a deep-tech startup based in Bengaluru and has recently raised $1.7 million in a seed round that was co-led by Ideaspring Capital and Yali Capital. The high capital injection is a milestone for the firm as it attempts to deal with the humongous worldwide challenge of enterprise technical debt. Established in 2024 and incubated by the Foundation of Science, Innovation and Development (FSID) at the Indian Institute of Science (IISc), LatentForce is building a name as an AI-native innovator in the category of large-scale code migrations and software overhauls. The company will use these funds to reinforce its proprietary migration models and speed up its expansion process across the Indian market and the world.
Core and market scale
The core of the LatentForce platform is its specialized software transformation approach, which is not inherent in other AI coding tools. Although the industry more broadly typically focuses on individual developer help, the task-specific Small Language Models (SLMs) that LatentForce is developing are designed with legacy transformation on an enterprise scale.
These AIs are aimed at assisting large corporations in updating decades-old software decades old with a high level of accuracy, security, and control. Using these efficient models, the platform has the goal of cutting down the cost, risk, and time of massive migrations as well as by up to 80%. This degree of efficiency has rendered overall enterprise transformation to be commercially viable at scale, previously deemed unrealistic or too dangerous for mission-critical systems.
The software overhaul market is huge, and its rate of growth is high, with the current estimates indicating the sector to be worth about $22.7 billion and projecting the industry to be more than $50 billion by 2031. There are even estimates of the size of the overall legacy code market of up to $5 trillion.
Aravind Jayendran, Founder and CEO of LatentForce, holds that the majority of current enterprises are now challenged by decades of accrued technical debt. Instead, he emphasizes that code migration is not to be considered simply a problem in coding, but a basic system transformation issue. By fulfilling this requirement, LatentForce seeks to be the default enterprise platform for rooting out legacy debt by using AI-driven modernization that does not lose engineering authority despite the scaling of the projects.
Investor confidence and leadership
The LatentForce leadership team combines one of the most exceptional mixtures of research in deep technologies and industry experience. The founding team also consists of the CEO, Aravind Jayendran, and CTO Vinay Kyatham, as well as Dr. Prathosh A P, who is an Assistant Professor at IISc Bangalore and the Head of Research.
Dr. Prathosh explains modernization philosophy as an extension of intent wherein the objective is not to corrupt the wisdom that exists in past codebases but to bring it to future architectures intact. Vinay Kyatham, in the meantime, points out that migration projects within an enterprise can fail because of a lack of control at scale. LatentForce responds to this by offering deterministic pipelines and security by design to enable teams to modernize mission-critical systems with confidence, as opposed to basing their decisions on guesswork or manual processes.
The Ideaspring Capital and Yali Capital investments are evidence of high trust in the vertically integrated AI platform of the startup. According to Naganand Doraswamy, Managing Partner of Ideaspring Capital, the integration of custom Large Language Models and deep graph engines is a paradigm shift to the legacy code market, particularly in the framework of enterprises that require total control and adherence.
As Ganapathy Subramaniam of Yali Capital indicated, AI-first deep-tech is the heart of their investment thesis, and LatentForce represents one of the most notable deployments of specialized systems to achieve results at enterprise scale. The company already has positive momentum with developers in the Banking, Financial Services, and Insurance (BFSI) and Software as a Service (SaaS) sectors in India and the United States, already using its platform to restructure sensitive codebases.
Conclusion
LatentForce is a forthcoming era of deep-tech development out of the top Indian research institutes, which takes on high-stakes upgrades where there is no room to compromise on accuracy and scalability. The company is in a strong position to assist global enterprises in unloading their legacy baggage and adopting modern architectures with its new seed funding and a strong foundation in Agentic AI and Small Language Models. With the trend of an ever-growing and trustworthy code migration being constantly on the rise, the audit-prepared stance provided by LatentForce and its emphasis on the engineering control will shape a new era of enterprise technology.
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