Freshworks makes strong market debut valuing it at $12.2 billion
By Shubhangi on Sep 23, 2021 | 03:33 AM IST
Business
software firm Freshworks Inc on Wednesday made a strong market debut on Nasdaq
valuing the company at $12.2 billion.
Shares of
the Salesforce rival Freshworks opened 21% higher at $43.50 compared to the
initial offering price of $36.
California-based
Freshworks, which is a software as a service (SaaS) company, offers services such
as messaging platform and AI-backed chatbot, to help companies meet their
customers’ needs.
"Our products are even more relevant today in the post
pandemic world", said Girish Mathrubootham, chief executive at Freshworks.
"Every business wants to engage better with their
customers through online digital channels, and they want to enable their
employees to work from home.”
Revenue of the company rose about 40% last year as
businesses went online due to the coronavirus pandemic. In the first half of
2021, sales of the company has continued to be on the upward trajectory.
Revenue of Freshworks, which has more than 50,000 customers,
rose to $169 million in the first half of 2021, compared to $110 million last
year. Net loss reduced to $9.8 million from $57 million a year ago.
The company, founded in 2010 by Girish Mathrubootham and
Shan Krishnasamy in India, became the first Indian SaaS company to go public in
the U.S.
The Accel and Sequoia Capital-backed company raised $1.03
billion in its stellar IPO.
Investor Accel owns 25.79% in the company while Sequoia
Capital owns around 12.26%, according to the regulatory filings. Tiger Global Management
also owns 25.79%.
(With
inputs from Reuters)
Picture
Credits: Reuters