Freshworks, the Chennai-headquartered software products and services company, has hit a valuation of $3.5 billion after raising $150 million from existing investors, including Google, Accel, and Sequoia, according to a Moneycontrol report.
The valuation exceeded earlier forecast of $2.5-3 billion after Freshworks closed its eight funding round last week, considered as its pre-IPO round, since 2011. The company is expected to further raise additional funding before its listing, the report added.
Freshworks, which bagged the unicorn tag after raising $100 million in a fresh round of funding co-led by Sequoia Capital and Accel in July last year, is expected to launch its IPO as early as 2021 on the American tech exchange NASDAQ.
The latest funding round brings the company’s total funding to $399 million and, according to the Moneycontrol report, puts a benchmark to what each Freshworks share could be valued at.
In the run-up to IPO, the company’s co-founder Girish Mathrubootham has relocated to US headquarters in California. He now spends most of his time in the US to get to know the consumers and other stakeholders better, according to earlier reports.
Freshworks, that was set up in 2010 to enable SMEs to support customers through e-mail, phone, website, and social networks, has so far garnered $250 million and is also backed by venture capitalist Accel India and Capital G, the investment unit of Google-owner Alphabet, among others.
A significant portion of the company’s revenue comes from small and medium businesses in the US.
Freshworks has offices in India, the United Kingdom, Germany, and Australia, and counts NHS, Honda, Rightmove, Hugo Boss, and Citizens Advice among its clients. The company’s products include Freshdesk, Freshservice, Freshsales, Freshcaller, Freshteam, Freshchat and Freshmarketer.
Freshworks has also acquired at least 10 firms since 2015. Its latest acquisition was Natero, a data-driven customer success firm based in the US, in May of this year.