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. 

SEE ALSO: Sora’s HR Automation Tool Raises $14 Million in Series A Funding Round

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. 

SEE ALSO: Edtech Platform Emeritus Successfully Raises $650 Million in Latest Funding Round

Image Source: rawpixel.com

 

Karandeep V

Karandeep was born in Pune, Maharashtra, an upcoming metropolitan city in the Western region of India. While most members of his family are engineers, he had different ideas. He was more inclined toward exploring the non-technical aspects of a business, which is why he studied Bachelors of Business Administration at Symbiosis International University, Pune.  Having said that, his love for new and upcoming technologies remained intact, which is why he has written extensively about technology throughout his career. After a brief stint with a gaming company at the beginning of his career, he discovered that his love for writing was not temporary.  Being a tech geek, he always liked installing and playing around with new applications on his mobile devices and the home desktop. He was fascinated by how technology can simplify even the most mundane and complex tasks with just a few commands. He keeps a close eye on how businesses use different tools to streamline their operations to boost productivity and efficiency.  At ToolsMetric, he writes product reviews that cover the main features and specifications of different enterprise applications. The sheer amount of innovation and hard work that goes into building these tech solutions is one of the reasons why Karandeep loves reviewing these tools. Besides product reviews, he also writes interesting news articles and blogs that track the latest developments in the tech industry.  When he is not writing, you can find him rooted to his seat playing video games, watching movies, or supporting his favorite football team. Since his childhood, he has always loved to travel and explore new places. Traveling is a major part of his life due to a myriad of reasons such as experiencing new cultures, food, and traditions. His other hobbies include playing football, cooking, and running.  You can find him on LinkedIn here.

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