Freshworks IPO Creates 500 Crorepatis; Top Points

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Freshworks IPO: Girish Mathrubootham, in interviews with several media outlets, highlighted that the Freshworks initial public offering (IPO) created a lot of wealth for its employees as more than 500 of its employees turned crorepatis (millionaires), as per IANS report.

New Delhi: Indian software-as-a-service (SaaS) firm Freshworks made its trading debut on US stock exchange Nasdaq on Wednesday and it was a strong one. The company was valued at USD 12.2 billion after it opened 21 per cent above the initial offering price of USD 36 apiece Shares of Freshworks opened at USD 43.5. The stock hit an intraday high of USD 48.75 on September 22. Freshworks sold 28.5 million common shares, raising USD 1 billion in proceeds, as per IANS report.

Girish Mathrubootham, in interviews with several media outlets, highlighted that the Freshworks initial public offering (IPO) created a lot of wealth for its employees as more than 500 of its employees turned crorepatis (millionaires). He further added that about 70, of these 500 employees, are under the age of 30, the IANS report.

Freshworks IPO, Valuation

1. The company was valued at USD 3.5 billion when it raised million funding from investors like Sequoia Capital, CapitalG and Accel in November 2019. The company is also backed by Steadview Capital and Tiger Global Management, according to IANS.
2. It plans to use the proceeds from the offering to acquire complementary businesses, products, services or technology. A part will also be used for general corporate purposes like working capital, operating expenses and capital expenditure, IANS reported.
3. Founded by Mathrubootham and Shan Krishnasamy as Freshdesk in 2010, the company started its journey as a helpdesk software for customer support. It decided to rebrand itself to Freshworks in June 2017 to incorporate the company’s growing software suite, the IANS report said.
4. Freshworks claims to have over 52,500 customers across the globe and it reported a revenue of USD 169 million in the first half of 2021. Compared to the first half of 2020, the company’s revenue has grown by nearly USD 60 million, the report added.