Freshworks, an Indian SaaS company, has filed for its IPO on the Nasdaq Exchange, becoming the first Indian SaaS firm to list on a U.S. stock exchange. The proceeds from the IPO will be allocated toward working capital, capital expenditures, acquisitions, and other expenses.
Freshworks, an Indian SaaS Company, Lists on Nasdaq
The Debut
On September 22, 2021, Freshworks made its debut on the U.S. stock exchange Nasdaq, opening at $43.5 per share, a 21% increase from its listing price of $36 per share. Last valued at $3.5 billion during its $150 million funding round in November 2019, the current listing now values the company at $10.13 billion.
Trading is expected to begin under the symbol “FRSH,” with the offering set to close on September 24th. Morgan Stanley, J.P. Morgan, and BofA Securities are leading the book-running management for the offering, with additional support from Jefferies, Barclays, and several other financial institutions as co-managers.
During the bell-ringing ceremony, Freshworks CEO and Co-founder, Mathrubootham, expressed his pride, stating, “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 U.S. markets is truly amazing. Today is day zero for Freshworks all over again and the beginning of so much more.”
The Road Ahead
Founded in 2010 as Freshdesk and rebranded as Freshworks in 2017, the company has seen significant growth. Backed by prominent investors like Accel, Sequoia Capital, and Tiger Global, Freshworks claims to have over 55,000 customers.
The funds raised from the IPO will be used to support working capital, operational expenses, capital expenditures, and acquisitions, including products, services, or technologies.
As a tribute to Tamil film star Rajnikanth, Mathrubootham shared, “The code name of our IPO was Project Superstar, after the most successful movie star from Tamil Nadu, Rajnikanth. I want to express my love and gratitude to him for being my maanaseega Guru.”