Freshworks makes history; for the first time, an Indian Software as a Service providing company has been listed on Nasdaq.
Freshworks’ public offering of 28,500,000 shares of Class A common stock was priced at $36 per share. Soon after the announcement, the company’s shares went up 32% increasing its stock price to $47.55 per share.
This new development has increased Freshworks’ market valuation to over $13 billion. Morgan Stanley, J.P. Morgan, and BofA Securities are serving as the company’s lead book-running managers, along with others like Jefferies and Barclays.
“I feel like an Indian athlete who has won a gold medal at the Olympics. We are showing the world what a global product company from India can achieve. The fact that we are doing it first in the US markets is truly amazing,” said CEO Girish Mathrubootham.
The COVID-19 pandemic caused a surge in demand for SaaS products to adapt to the changing organizational needs. The increase in demand helped Freshworks grow many folds by increasing its revenue up to 40% last year. In the first half of 2021, Freshworks raised $169 million in revenue that is considerably more than the data from 2020.
Freshworks is a San Mateo-based tech startup founded by Girish Mathrubootham, Shan Krishnasamy, and Vijay Shankar in 2010. The company was first launched in Chennai, India. Freshworks specializes in providing SaaS customer engagement solutions and has a customer base of over 52,000 at a global level.
Mathrubootham said, “For our employees in India, we have more than 500 crorepatis and 70 of them are under the age of 30. They passed out of college a few years ago and they fully deserve it.”