Freshworks IPO: SaaS startup Freshworks files US IPO with declining losses
In a filing with the U.S. Securities and Exchange Commission, the company said the size of the offering was $ 100 million, a placeholder that will change when terms for the sale of shares are set. . The potential competitor of much larger Salesforce.com Inc. was valued at $ 3.5 billion in a 2019 funding round.
In addition to the IPO, Freshworks also has the option of merging with an ad hoc acquisition vehicle or direct listing, as well as raising more capital from private investors.
Founded by Girish Mathrubootham in Chennai ten years ago, Freshworks has quickly become the flagship model of India’s software as a service industry, which increasingly serves global customers. The company then moved to San Mateo, California to service this growing business.
The company, which now has 52,000 customers, saw its revenue increase in the first six months of 2021 to $ 169 million, from $ 110 million a year ago. His net loss declined to $ 9.8 million from $ 57 million a year ago, according to his file.
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The company’s prospectus revealed that subsidiaries of investors Accel and Tiger Global own more than 25% of the company’s Class B shares, while Sequoia Capital owns just over 12% of the same class of shares.
CEO Mathrubootham compared what the company is building to Apple’s iPhone for enterprise software, “blending existing technology with unified, intuitive and enjoyable experiences,” he said in the prospectus.
“Before 2007, we all used multiple devices. Personally, I had a Nokia cell phone, a Garmin GPS, a Sandisk MP3 player and a Canon compact camera, ”Mathrubootham said. “As consumers, we quickly ditched our gadgets for a single product that offered a unified, intuitive and enjoyable premium experience. ”
The Freshworks IPO is led by Morgan Stanley, JPMorgan Chase & Co. and Bank of America Corp. seeks to list its shares on the Nasdaq Global Select Market under the symbol FRSH.