Indian SaaS start-up Freshworks lists on Nasdaq following billion-dollar IPO
Chennai and San Mateo-based software-as-a-service (SaaS) company Freshworks Inc. made its debut on Nasdaq after an initial public offering (IPO) worth over $1 billion. Freshworks co-founder and CEO, Girish Mathrubootham, tweeted to thank employees, customers, partners, and investors for believing in the company's dream. It is the first Indian SaaS company and unicorn to be listed on the US exchange. Here are more details.
Freshworks was founded as Freshdesk in 2010
Freshworks was co-founded by Mathrubootham and Shan Krishnasamy in 2010 as Freshdesk. It was rebranded to its current name in 2017. Freshworks' products include IT, customer services, sales, marketing, and HR solutions. The company operates out of 13 global offices and serves 52,000+ clients, including Bridgestone, Vice Media, TaylorMade, Chargebee, DeliveryHero, ITV, Klarna, Multichoice, and OfficeMax.
Mathrubootham shares his happiness on Twitter
Freshworks generated just over $1 billion
Freshworks sold 28.5 million Class A shares at $36 per share in the IPO, generating just north of $1 billion at a market cap of $10.13 billion. Underwriters have also been given a 30-day option to buy an additional 2.85 million Class A shares at the IPO price. Freshworks was valued at $3.5 billion during its last $150 million fundraise in November 2019.
Share price surged 33% during initial trade
During the bell-ringing ceremony at Nasdaq, Mathrubootham said, "I feel like an Indian athlete who has won a gold medal at the Olympics. I am really proud of how far we have come and more importantly, I am excited about what's ahead." Driven by strong investor interest, Freshworks' share price surged by 33% to $48 in initial trade on Nasdaq under the ticker "$FRSH".
Mathrubootham likened Freshworks' success to Roger Bannister moment
Talking to The Economic Times, Mathrubootham compared Freshworks' Nasdaq listing to "the Roger Bannister moment...and then in the immediate year after, you had so many other athletes that did it," he said. For context, Bannister was the first athlete to run a mile in under four minutes. "I see this moment of Freshworks as the equivalent of that," Mathrubootham added.
