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Freshworks makes strong market debut valuing it at $12.2 billion

PUBLISHED ON 2021-09-23 03:32:00 EST Shubhangi

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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

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