Freshworks Raises $1.03B in US Initial Public Offering

Freshworks announced that it had priced the initial public offering well above the target range to raise $1.03 billion, valuing the Salesforce.com rival at $10.13 billion as hybrid work fuels demand for its products. Freshworks shares will commence trading on the Nasdaq on Wednesday under the symbol “FRSH.”

Business software firm priced 28.5 million shares at $36 per share. The company is backed by Accel and Sequoia Capital. It had earlier expected to raise $969 million at the top end of its increased price range of $32 to $34 per share.

Freshworks joins a number of big names from the enterprise software business that has taken advantage of red-hot U.S. capital markets over the past 18 months.Many software company’s Initial Public Offering during the period was well-received by investors who noticed growth in the sector even after the pandemic. The adoption of hybrid work models by companies across the world drove up demand for enterprise software products.

Freshworks was founded in India in 2010 helps businesses with customer management, offering products including a messaging platform, an artificial intelligence-powered chatbot for customer support and call-centre solutions that promise shorter wait times.The company was founded by Mathrubootham and Shan Krishnasamy as Freshdesk in 2010 and was rebranded as Freshworks in 2017. The investors in the company include Sequoia Capital, Accel and Tiger Global.