Freshworks eyes $969 million via IPO at $9.7 billion valuation


Software products startup Freshworks, which is expected to list on the Nasdaq stock exchange on September 22, is planning to raise as much as $969 million through its initial public offering at a valuation of around $9.7 billion.
The San Mateo-based startup that was founded in Chennai, plans to sell 28.5 million shares at a price range of $32-$34, the company said in an update to its S-1 filing with the US Securities and Exchange Commission (SEC) on Monday.

The customer engagement software maker which rivals Salesforce could raise $969 million if investors buy at the upper end of the price band, with the offer amount rising to just over $1 billion if over-allotment of 2.85 million additional shares is done.

Freshworks reported a 53% surge in its revenues to $169 million in the six months that ended June 30, 2021 compared with revenue of $110 million recorded in the same period last year. At the same time, losses declined sharply by 83 % to $ 8.9 million.
The company was valued at $3.5 billion when it raised $150 million from Sequoia Capital, CapitalG and Accel in November 2019.

Its prospectus, filed with the SEC last month, revealed that affiliates of investors Accel and Tiger Global both own over 25% of the company’s Class B shares, while Sequoia Capital owns a little over 12% of the same class of shares.


Amazon has begun an investigation into allegations of corruption by its legal representatives in India and has placed a senior member of the team on leave, The Morning Context reported earlier today.

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The Software as a Service (SaaS) startup is seeking to list its shares on the Nasdaq Global Select Market, under the symbol FRSH.
Freshworks, is the latest to join a rush of venture-funded companies in India that are also aggressively diversifying beyond private markets on the back of a stellar domestic listing by food technology platform Zomato in July.

Meanwhile, in the US a wave of listings by technology ventures such as Zoom, Snowflake, Asana and Palantir have been extremely well received in the backdrop of increasing digitisation world over, especially after the onslaught of the Covid-19 pandemic.

The company said it now has over 52,000 customers and in the last 12 months has earned a revenue of $308 million, a growth of over 40%, while posting a net loss of $10 million, in the same period.

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