Freshworks IPO: Salesforce Rival Freshworks Files for IPO in the U.S.
Silicon Valley and Indian-based SaaS startup Freshworks has filed for a $100 million IPO to get listed on the New York Stock Exchange. The company has filed to be listed as “FRSH” on Nasdaq.
With this move, the customer relationship management (CRM) software vendor aims to take on the bigger players such as Salesforce. The company wrote in an S-1 filing that it is planning to raise $100 Mn through its public offer.
The volume of the shares that will be offered and the price range for the proposed insurance is not yet finalized. This means that the company will either raise funds by offloading shares from current investors or issue new shares.
Freshworks is currently backed by multiple investors which include Tiger Global, Accel, Capital G, and Sequoia Capital.
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The Road ahead for Freshworks
Freshworks has joined a stellar list of Indian unicorns that have public markets in their sight. Some of these unicorns include Nykaa, PolicyBazaar, and Paytm. Fintech merchant Pine Labs also plans to get listed on the US stock exchange in 2022.
The CRM startup has appointed J.P. Morgan, BofA Securities, Barclays, Morgan Stanely, and Jeffries as official book managers to the IPO.
The net capital that will be raised will be used for general corporate purposes such as covering operating expenses, capital expenditures, working capital requirements, and more.
The company also said that it will use a small chunk of the net proceeds for strategic acquisitions, lucrative investments in complementary services, products, technologies, and businesses.
Ups and Downs in the Journey
Freshworks reported a revenue spike of around 45% between 2019 and 2020. In 2020, the overall revenues of the firm were $250 million. Despite that, the company reported an 84% rise in net losses between 2019 and 2020.
Freshworks said that it is taking some corrective action to minimize losses in 2021. The company’s losses went down by nearly 83% in the first half of 2021 and it hopes to continue cutting down on losses.
Girish Mathrubootham, the Founder of Freshworks said that although the company was not founded in Silicon Valley, its fresh approach that relied on product-driven, low-cost, and low-touch sales have drawn customers toward the platform.
More about Freshworks
The Indian SaaS startup has successfully raised over $327 million in funding from popular investors such as Sequoia India, Tiger Global Management, CapitalG, Accel, and more.
At present, the company has a 52,500 strong customer base.
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