Indian SaaS venture Freshworks hits $3.5bn valuation after raising $150m: Report

Girish Mathrubootham, founder and CEO, Freshworks. Photo: SaiSen/Mint

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.

Singapore Reporter/s

In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

Following vacancies can be applied for (only in Singapore).   

  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
  • A journalist to track special situations funds, distressed debt and private credit (from the PE angle) across Asia.

Singapore Reporter/s

In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

Following vacancies can be applied for (only in Singapore).   

  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
  • A journalist to track special situations funds, distressed debt and private credit (from the PE angle) across Asia.