Customer relationship management software platform, Freshworks Inc. has petitioned for an initial public offering (IPO) worth $100 million with the US Securities and Exchange Commission (SEC).
The 11-year old software-as-a-service (SaaS) startup has appointed Morgan Stanley, J.P.Morgan, BofA Securities, Jeffries, and Barclays as book managers to the IPO, among others.
Freshworks joins the developing rundown of Indian unicorns which are making a straight shot towards public markets. These incorporate financial services major Paytm, insurtech player PolicyBazaar and beauty marketplace Nykaa. Merchant fintech Pine Labs is also hoping to list on the US exchanges in 2022.
The net returns from the IPO will be utilized by the company for general corporate purposes, including catering to working capital necessities, operating costs and capital uses.
The SaaS unicorn, which was last valued at $3.5 billion in November 2019, said that it will also be utilizing a part of the net returns for acquisitions or strategic investments in complementary organizations, items, services, or advances.
“Freshworks is the company that wasn’t supposed to win. Whether we could differentiate ourselves in crowded markets, or compete with larger players, or build a global SaaS company from India, the doubts were always there. And people were not shy about telling me! Over the years, I’ve heard it all, including There, are 600 help desks in the market. How do you expect to win? You can’t find talent in Chennai; you can’t win unless you move to Bangalore,” said Freshworks’ founder Girish Mathrubootham in an organizer’s letter, as a part of the plan.
Freshworks has raised more than $327 million in financing to date from any semblance of Accel, CapitalG, Sequoia India, and Tiger Global Management. It has in excess of 52,500 customers across 120 nations.
“Freshworks is a very special company. We were unconventional from the beginning – not for its own sake, but because we saw an opening in the market for a unique approach. We weren’t founded in Silicon Valley. We didn’t target large enterprises. We didn’t have access to a been-there-done-that talent pool. We offered a ‘fresh’ approach relying on efficient, product-led, low-cost, and low-touch sales; and we targeted massive, underserved markets. And we had one simple mantra: happy employees create happy customers. In fact, we made that our mission,” added Mathrubootham.
The company announced a revenue bounce of generally 45% between the calendar year 2019 and 2020. For 2020, the overall revenues for the firm remained at $250 million. The company revealed an 84% increase in overall deficits somewhere in the range of 2019 and 2020. For Freshworks, the misfortunes for the calendar year 2020 remained at $57.3 million.
Notwithstanding, the company has made purposeful endeavors to lessen its misfortunes in 2021. For a half year finishing 30 June, Freshworks’ misfortunes dropped by almost 83% to $9.84 million every 2021.
Mathrubootham, a known fan of Rajnikanth, also made a notice about his venerated image.
“The code name for our IPO was Project SuperStar, named after the most successful movie star from Tamil Nadu, Rajinikanth. I want to express my love and gratitude to him for being my ‘maanaseega’ guru. There is no comparable English word to express what this means. It is a mentor; a role model that lives in your mind, from whom you learn a lot by watching from afar […] Thank you, Thalaivaa!,” said Mathrubootham, in the company filings with the SEC.
The company in its danger factors stated that it probably won’t have the option to achieve profitability or proceed with the rapid development caused by the Coronavirus pandemic.
“We have a history of losses, and we may not be able to achieve profitability or, if achieved, sustain profitability […] We have experienced rapid growth in recent periods, and our recent growth rates may not be indicative of our future growth, said Freshworks in its company filings.