Freshworks raises up to $ 912 million in IPO at a valuation of nearly $ 9 billion

Software company Freshworks is aiming to raise up to $ 912 million through its initial public offering (IPO) following its regulatory filings with the Securities and Exchange Commission on Monday.

The company announced it will sell 28.5 million of its Class A common shares for between $ 28 and $ 32 per share. If he manages to sell his shares in the upper range, it will raise $ 912 million, according to Reuters report, would value the company at around $ 9 billion.

The software-as-a-service (SaaS) company had submitted its IPO papers last month, but hadn’t revealed any important details, including the amount she was planning to raise.

Founded in 2010 by Girish Mathrubootham and Shan Krishnasamy, Freshworks plans to use the proceeds from the IPO for general corporate purposes such as operating expenses, working capital and capital expenditures. It can also use a portion of the proceeds to purchase ancillary businesses, products, services, or technology.

In his latest regulatory filings with the SEC, Freshworks said it has a large addressable market of about $ 120 billion. And the company estimates the annual potential market opportunity for its products at $ 77 billion.

“According to IDC, the markets we address within CRM will represent an opportunity of $ 76 billion by 2025 and the SSM market an opportunity of $ 44 billion,” Freshworks said in its offer.

Freshworks was last valued at $ 3.5 billion after a fundraiser in 2019 and is supported by companies like Accel, Sequoia Capital and Tiger Global.

A $ 9 billion valuation would put Freshworks at the top of SaaS startups from India, ahead of Postman, which was valued at $ 5.6 billion in its last round and Browserstack at $ 4 billion

In its filings last month, Freshworks stated that sales for the past twelve months were $ 308 million. More importantly, the net loss has been reduced to $ 9.8 million from $ 57 million last year. According to its own information, the company has more than 52,500 customers worldwide.

According to the filing, Tiger Global PIP VI Holdings and Accel India III (Mauritius) own 26.24% and 25.79%, respectively. Sequoia Capital Global Growth Fund III owns 12.26% of Freshworks, while the company’s co-founder and CEO holds 7.08%. Google owns 8.31% of the shares in it. The remaining 20% ​​is owned by other stakeholders, including its second co-founder Krishnasamy.


The company’s IPO is led by Morgan Stanley, JP Morgan Chase, and Bank of America. It intends to list its shares on the Nasdaq Global Select Market.

Freshworks has several major competitors worldwide, including Salesforce and Palantir.

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