Freshworks debuts on Nasdaq; current valuation at $13 billion
At a Glance
Freshworks, a provider of SaaS customer engagement solutions, debuted on the Nasdaq on Wednesday after a billion-dollar IPO. Freshworks stock increased by 32% after the company raised $1 billion in an IPO priced above the marketed range.
Freshworks, a provider of SaaS customer engagement solutions, made its debut on the Nasdaq stock exchange on Wednesday after a billion-dollar IPO. This has made Freshworks the only Indian SaaS company to get on the American stock exchange.
Freshworks stock jumped 32% after the company raised $1 billion in an initial public offering priced above a marketed range. The tech firm’s shares closed at $47.55 in New York trading on Wednesday, giving it a market value of $13 billion.
Girish Mathrubootham and Shan Krishnasamy founded Freshworks in India in 2010 and relocated to Silicon Valley to be closer to customers. The company is now headquartered in San Mateo, California, but it retains a significant workforce in Chennai.
According to Girish, Freshworks’ debut on Nasdaq has made over 500 employees in India crorepatis, with approximately 70 of them being under the age of 30. Freshworks employs 4,300 people worldwide, with 76% of employees owning stock in the company.
We are growing at a pretty healthy clip at more than 45 percent. We have more than 52,000 paying customers globally across 120-plus countries, more than 13,000 of those customers are paying us over $ 5,000 in annual recurring revenue.Girish Mathrubootham
Reports said that Sequoia Capital owns 12.1 percent of Freshworks, as per the shareholding pattern disclosed in the company’s IPO papers filed with the United States Securities and Exchange Commission (US SEC). Tiger Global and Accel each own a quarter of the company, while Alphabet Inc.’s independent growth fund, Capital G owns 8.2 percent.
We are fortunate to be partners in this industry-defining company, along with Accel, Tiger Global, and CapitalG. Having led or co-led three financing rounds, our investment in Freshworks represents Sequoia India’s single largest investment from its India/SEA funds.In a blog post Sequoia’s Mohit Bhatnagar and Carl Eschenbach
Girish added that he was very excited about what Freshworks’ debut on Nasdaq meant for the Indian SaaS Sector. “We have a whole next set of entrepreneurs and founders who are building companies that are scaling nicely, and we all want to share this dream of India as a prospect nation, and I’m excited to see the next set of companies go public, and we want to see more global product companies from India,” he said.