Indian software-as-a-service (SaaS) firm Freshworks made its trading debut on the US stock exchange Nasdaq on Wednesday and it was a strong one.
The company was valued at $12.2 billion after it opened 21% above the initial offering price of $36 apiece, Business Insider reported.
Shares of Freshworks opened at $43.5. The stock hit an intraday high of $48.75 on September 22. Freshworks sold 28.5 million common shares, raising $1 billion in proceeds.
Girish Mathrubootham, in interviews with several media outlets, highlighted that Freshworks’ initial public offering (IPO) created a lot of wealth for its employees as more than 500 of its employees turned crorepatis (millionaires). He further added that about 70, of these 500 employees, are under the age of 30, the report said.
The company was valued at $3.5 billion when it raised $150 million funding from investors like Sequoia Capital, CapitalG, and Accel in November 2019. The company is also backed by Steadview Capital and Tiger Global Management.
It plans to use the proceeds from the offering to acquire complementary businesses, products, services, or technology. A part will also be used for general corporate purposes like working capital, operating expenses, and capital expenditure.
Founded by Mathrubootham and Shan Krishnasamy as Freshdesk in 2010, the company started its journey as a helpdesk software for customer support. It decided to rebrand itself to Freshworks in June 2017 to incorporate the company’s growing software suite.
Freshworks claims to have over 52,500 customers across the globe and it reported a revenue of $169 million in the first half of 2021. Compared to the first half of 2020, the company’s revenue has grown by nearly $60 million, the report added.