Sequoia-backed Indian SaaS unicorn Freshworks raises $150m at $3.5b valuation

Photo: Freshworks

California and Chennai-based customer engagement software maker Freshworks Wednesday announced that it has raised $150 million in Series H round of funding at a post-money valuation of $3.5 billion.

The round was led by existing investors Sequoia Capital, CapitalG, and Accel, Freshworks said in a statement. The capital will be used to further Freshworks’ worldwide expansion as well as accelerate investment in its integrated SaaS platform, it added.

The latest funding round brings the company’s total funding to $399 million.

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 US tech exchange NASDAQ.

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 media reports.

“The CRM landscape is littered with solutions that are high on hype and low on results,” said Mohit Bhatnagar, Managing Director, Sequoia Capital India LLP. “Freshworks is unique in delivering software that works for end users across the organization, whether in marketing, sales, support or customer success. There’s a reason Sequoia’s teams across India and the US have each independently decided to double down on Freshworks as it expands its footprint from India to global markets.”

Freshworks also announced a common data platform to unify important customer information from marketing, sales, support and customer success to enhance visibility of functions across the board. Teams across the enterprise will be able to move beyond simple customer ratings to actionable recommendations based on customer success data, it said.

Freshworks was set up in 2010 to enable SMEs to support customers through e-mail, phone, website, and social networks. A significant portion of the company’s revenue comes from small and medium businesses in the US.

Freshworks has offices in India, the UK, 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.