Freshworks’ valuation jumps to USD 10 billion in stock market debut
Category: #headlines |   By Pankaj Singh |   Date: 2021-09-23  | 
  • Share
  • Twitter
  • Facebook
  • LinkedIn

Freshworks’ valuation jumps to USD 10 billion in stock market debut

Freshworks set its initial public offering (IPO) at USD 36 per share, bolstering its IPO share price for the second time in the last week and pulling its total valuation over USD 10 billion.

The company started trading under the stock symbol of ‘FRSH’ on the Nasdaq Global Select Market on September 22. It had initially planned to sell shares at USD 32-34 per share price range, after increasing the range from USD 28-32 per share.

Freshworks secured a total valuation of USD 1.03 billion from the offering with the current share price. The total offer amount of the company then increased to over USD 1.13 billion, including an over-allotment of around 2.85 million shares.

Freshworks had mentioned earlier that the net proceeds from this offering will be used for general corporate purposes, including operating expenses, working capital, and capital expenditures. It may also use some part of the net proceeds to obtain complementary businesses, services, products, or technologies.

This public offering has taken place when SaaS IPOs in the U.S. have achieved overwhelming success along with making many billionaires overnight. The listings of Zoom, Cloudflare, Snowflake, and Palantir which are already big private companies that are becoming even bigger public companies have stimulated great enthusiasm from private equity funds, venture capitalists, and hedge funds.

Shan Krishnasamy and Girish Mathrubootham founded the company as Freshdesk in 2010 and then rebranded it as Freshworks in 2017. Sequoia Capital, Accel, and Tiger Global are among its investors and the company was last valued at USD 3.5 billion on securing USD 150 million funding in November 2019.

Freshworks witnessed its revenue rise to USD 169 million for the first six months of 2021 as compared to USD 110 million in the same period of 2020. The net loss reduced to USD 9.8 million from USD 57 million a year ago. It has around 4,300 employees and 52,500 customers as of August 31.

J.P. Morgan, Morgan Stanley, and BofA Securities are the main book-running managers for the offering.

Source Credits:

https://www.moneycontrol.com/news/business/ipo/freshworks-to-raise-over-1-billion-through-ipo-valuation-jumps-to-over-10-billion-7493051.html

  • share
  • Twitter
  • Facebook
  • LinkedIn


About Author

Pankaj Singh    

Pankaj Singh

With a commendable experience of content creation under his belt, Pankaj Singh, a qualified Post Graduate in Management, boasts of having worked as a freelance writer and an insurance underwriter. Additionally, Pankaj has also enriched his qualification portfolio with...

Read More

More News By Pankaj Singh

Record EV sales boost Tesla’s quarterly profit to USD 1.6 billion
Record EV sales boost Tesla’s quarterly profit to USD 1.6 billion
By Pankaj Singh

Automaker giant Tesla, Inc has earned a profit of USD 1.6 billion in the third-quarter ending in September, backed by record car sales despite supply chain woes and chip shortages. The net income in Q3 is nearly five times from USD 331 million it rec...

Tata Motors likely to raise USD 1 billion for its passenger EV business
Tata Motors likely to raise USD 1 billion for its passenger EV business
By Pankaj Singh

Shares of Tata Motors rose by around 10% as the auto major is likely to raise USD 1 billion for its passenger electric vehicle business from TPG Rise Climate, taking the company’s total valuation to over USD 9.1 billion. Tata Motors Ltd (TML) ...

Mercedes-Benz accelerates China push with new research & design center
Mercedes-Benz accelerates China push with new research & design center
By Pankaj Singh

Mercedes-Benz AG is reportedly investing more funds to enhance its research and design capabilities in China to stay ahead of consumer trends and regulations in the world’s largest auto market. The luxury car manufacturer will unveil its new T...