Freshworks Files for US IPO

William Smith

News first broke of the customer engagement company’s plans in May

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Freshworks Files for US IPO

The customer and employee engagement software provider Freshworks has filed for a proposed initial public offering in the United States. 

The company said it had publicly filed a registration statement on Form S-1 with the U.S. Securities and Exchange Commission, and that it intended to list its Class A common stock on the Nasdaq Global Select Market under the ticker symbol “FRSH”. Morgan Stanley, J.P. Morgan and BofA Securities will act as lead. 

Freshworks provides a software as a service suite, with its flagship customer experience product being customer service platform Freshdesk (which the company was previously named after), as well as a chatbot offering named Freshchat and cloud phone system known as Freshcaller. 

Since being founded in 2010 in Chennai, India, Freshworks has attracted nearly $500mn of funding across nine funding rounds – with its Series H in November 2019 alone bringing in $150mn. That round was jointly led by Sequoia Capital, CapitalG and Accel and valued the company at $3.5bn.   

News first broke of the customer engagement company’s plans in May, with reports suggesting the debut could see the company valued at around $10bn. The number of shares to be offered as well as the price range were not announced. 

The news comes on the back of an announcement in February that it generated over $300mn of subscription revenue in 2020, representing a year-over-year growth rate of 40% and setting a new record for the company.  

“Like everyone, our 2020 plan went out the window when the pandemic hit, but our hard-working team persevered,” said Girish Mathrubootham, Freshworks founder and CEO. “Our mission is to create customers for life and during this past year, this goal was put to the test. Our team rose to the challenge and rallied around our customers to help them navigate unknown waters and empower their employees to respond to increasing customer demands.”

 

 


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