With 281.4 million shares superb after a offering, or 284.3 million if underwriters practice all options to cover with overallotments, a association is looking during a gratefulness of scarcely $10 billion should it cost during a high finish of a range.
Here are 5 some-more things to know about Freshworks before it starts trading:
They really many brand as a loser upstart
With a far-reaching swath of services, Freshworks competes with several determined players. In patron knowledge software, it competes with Salesforce.com Inc.
CRM,
-0.89%
and Zendesk Inc.
ZEN,
-1.73%,
as good as Oracle Corp.
ORCL,
-0.25%
and SAP SE AG
SAP,
-2.90%.
IT use government competitors embody ServiceNow Inc.
NOW,
-0.35%
and Atlassian Corp.
TEAM,
-0.99%.
In patron attribute management, or CRM, software, it not usually competes with Salesforce yet also with Microsoft Corp.’s
MSFT,
-1.86%
Dynamics service.
“Freshworks is a association that wasn’t ostensible to win,” pronounced Rathna Girish Mathrubootham, owner and arch executive, in a company’s S-1 filing.
In fact, a strange association was all in response to a “poor patron use experience” Mathrubootham had, and a association persevered in a swarming assistance table market, commencement in Chennai, India, where it was doubtful to grow a tellurian software-as-a-service company.
“Now, a dream is to be a disruptive actor in a CRM marketplace by violation down a silos of marketing, sales, and patron support with a one patron cloud,” Mathrubootham said. “And in a future, we dream of violation a silos of IT and HR, building a one worker cloud.”
For some-more than $1 billion, don’t pattern any votes
With an charity of 28.5 million shares, and an additional 2.9 million shares to cover overallotments, a association stands to lift adult to scarcely $1.07 billion.
The charity is for Class A shares, however, adding to a already 252.9 million Class B shares that exist. On tip of that, a Class A shares in a charity usually reason one vote, while a Class B shares reason 10 votes, so new shareholders will usually get about 1% of voting energy following offering.
Accel, Tiger Global see large lapse on decade-long investment
Up until now, Freshworks has already lifted $484 million from investors, according to Crunchbase. The initial investors were Accel and Tiger Global, that sunk $1 million into Freshworks’ Series A turn scarcely a decade ago.
From there Accel and Tiger Global have been a partial of any appropriation round, with firms like CapitalG and Sequoia Capital participating in other rounds, final with a Series H turn behind in 2019 for $150 million, that valued a association during $3.4 billion.
With all those years of funding, Accel owns 25.5% of Class B shares, while Tiger Global, owns 26% respectively.
CapitalG’s investments have yielded an 8.1% stake, while Sequoia has a 12% stake. CEO Mathrubootham binds 6.6% of Class B shares.
Based in San Mateo, designed in India
The association prides itself by not being a Silicon Valley start-up, yet it changed a domicile to a San Francisco Bay Area in 2018 to “blend a art of Indian pattern with a scholarship of Silicon Valley scaling.”
Of a company’s 4,300 employees, about 3,800, or 88%, work out of several locations in India, “where many of engineering, product design, sales and marketing, patron support, and ubiquitous and executive crew are located.”
Even though, a association reported bureau closures over a COVID-19 pandemic, it pronounced that it considers “our family with employees in any embankment to be good, and we have not gifted any work stoppages.”
For a 6 months of 2021, Freshworks pronounced that 58% of a income was generated from business outward North America. The association reported income of $168.9 million for a initial 6 months of 2021 for a detriment of $9.8 million, compared with $110.5 million and a detriment of $57.1 million for a same duration in 2020.
For 2020, Freshworks reported income of $249.7 million and a detriment of $57.3 million, compared with income of $172.3 million and a detriment of $31.1 million in 2019.
Seeks to constraint a square of an estimated $120 billion market
Using total from International Data Corp., Freshworks believes it has an addressable marketplace of about $120 billion.
That covers products in CRM, that includes patron service, hit center, salesforce capability and management, and selling debate government products, estimated to be a $76 marketplace by 2025 by IDC. Products in System and Service Management, that includes IT use management, IT operations management, and IT automation and pattern government products, are approaching to have a 2025 marketplace of about $44 billion.
Based on Freshworks’ inner information and analysis, a association pronounced it estimates a products have a intensity annual marketplace event of $77 billion.
