SaaS Startup Freshworks to raise $1 billion via IPO, valuing the company at $10 billion
Freshworks, a cloud-based software company, which is expected to list on the Nasdaq plans to raise as much as $1.02 billion in an initial public offering (IPO), valuing the company at more than $10 billion.
This is the first software products company founded in India to be listed on a US stock exchange.
The San Mateo-based startup, which was started in Chennai, said in a press release that it aims to offer 28.5 million shares at a price of $36, up from the marketing range of $32-$34 disclosed earlier this week, indicating high investor demand.
Freshworks told the US Securities and Exchange Commission last week that it planned to price its stock in the IPO in the $28-$32 range.
Freshworks has also given the underwriters a 30-day option to buy up to 2,850,000 additional shares of Class A common stock at the IPO price minus underwriting discounts and commissions.
Freshworks reported a 53 percent increase in revenue to $169 million in the six months ending June 30, 2021, compared to $110 million in the same time the previous year. Losses, on the other hand, dropped by 83 percent to $ 8.9 million.
When it raised $150 million from Sequoia Capital, CapitalG, and Accel in November 2019, the company was valued at $3.5 billion.
According to the company's prospectus, which was submitted with the Securities and Exchange Commission last month, affiliates of investors Accel and Tiger Global possess over 25 percent of the company's Class B shares, while Sequoia Capital owns just over 12 percent of the same class of shares.
The SaaS company wants to float its stock on the Nasdaq Global Select Market under the ticker FRSH.
Freshworks is the latest to join a slew of venture-backed startups in India that are rapidly growing beyond private markets in the wake of food technology platform Zomato's blockbuster domestic offering in July.
Meanwhile, in the United States, a wave of listings by technology companies like as Zoom, Snowflake, Asana, and Palantir have been extraordinarily favourably received, especially in the wake of the Covid-19 pandemic's attack.
The company claims to have over 52,000 clients and has made $308 million in revenue in the last 12 months, an increase of over 40 percent while having a net loss of $10 million in the same period.
This is the first software products company founded in India to be listed on a US stock exchange.
The San Mateo-based startup, which was started in Chennai, said in a press release that it aims to offer 28.5 million shares at a price of $36, up from the marketing range of $32-$34 disclosed earlier this week, indicating high investor demand.
Freshworks told the US Securities and Exchange Commission last week that it planned to price its stock in the IPO in the $28-$32 range.
Freshworks has also given the underwriters a 30-day option to buy up to 2,850,000 additional shares of Class A common stock at the IPO price minus underwriting discounts and commissions.
Freshworks reported a 53 percent increase in revenue to $169 million in the six months ending June 30, 2021, compared to $110 million in the same time the previous year. Losses, on the other hand, dropped by 83 percent to $ 8.9 million.
When it raised $150 million from Sequoia Capital, CapitalG, and Accel in November 2019, the company was valued at $3.5 billion.
According to the company's prospectus, which was submitted with the Securities and Exchange Commission last month, affiliates of investors Accel and Tiger Global possess over 25 percent of the company's Class B shares, while Sequoia Capital owns just over 12 percent of the same class of shares.
The SaaS company wants to float its stock on the Nasdaq Global Select Market under the ticker FRSH.
Freshworks is the latest to join a slew of venture-backed startups in India that are rapidly growing beyond private markets in the wake of food technology platform Zomato's blockbuster domestic offering in July.
Meanwhile, in the United States, a wave of listings by technology companies like as Zoom, Snowflake, Asana, and Palantir have been extraordinarily favourably received, especially in the wake of the Covid-19 pandemic's attack.
The company claims to have over 52,000 clients and has made $308 million in revenue in the last 12 months, an increase of over 40 percent while having a net loss of $10 million in the same period.
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