freshworks reveal On Monday, it is targeting a valuation of up to $9 billion in its US initial public offering, of which it hopes to raise more than $800 million.
The California-based firm, which began its journey in India and rivals Salesforce, said it plans to sell 28.5 million shares at a price range of $28 to $32. If the firm is able to sell its shares at the top limit, it will raise $912 million. Freshworks originally submitted the paperwork for its IPO in late August, but did not disclose many figures.
The 11-year-old firm was finally valued at $3.5 billion in the November 2019 financing round. The startup considered raising a pre-IPO round earlier this year at a valuation of more than $5 billion, but decided against it, a person familiar with the matter told Nerdshala.
FreshWorks, which counts Accel, Sequoia Capital India, Tiger Global and CapitalG among its existing investors, develops and offers a wide variety of business software tools, from CRM to help-desk software. In recent years, it has built enterprise SaaS platforms to give customers a set of integrated business tools and aggressively seeks to broaden its product offerings.
The startup, which has applied to list its shares on the Nasdaq under the FRSH symbol, serves more than 50,000 customers and grew its revenue in the first six months of the year to $169 million, up from the same period last year. during the period was $11 million. At the same time, its net loss declined to $9.8 million from $57 million a year ago.
“First, based on industry research from International Data Corporation (IDC), we believe we have a large addressable market value of approximately $120 billion,” the firm said in an updated S-1 filing Monday. said in.
“Second, based on our internal data and analysis, we estimate the annual potential market opportunity for our products to be $77 billion. […] We expect our projected market opportunity to continue to expand as customers become more likely to use our products or expand their use of our products, increasing the weighted average ARR per customer for use of our products.
Nerdshala recently spoke to FreshWorks co-founder and CEO Girish Mathrubhumi about the business. Mathrubhumi is one of the most respected entrepreneurs in India. Together with three friends, Mathrubhumi launched an $85 million venture fund in late July of this year to support early-stage SaaS startups in the world’s second-largest Internet market.