Software company Freshworks on Wednesday made its debut on the Nasdaq stock exchange after a billion-dollar IPO, making it the first Indian SaaS company to list on the American bourse. Freshworks was founded in India in 2010 by Girish Mathrubootham and Shan Krishnasamy and moved to Silicon Valley to be closer to customers. Now based in San Mateo, California, the company retains a substantial workforce in Chennai.
The company’s shares itself rose around 32 per cent after it managed to raise $1 billion through its initial public offering (IPO). Freshworks’ shares closed at $47.55 on Wednesday in the New York trading, which brought up the market valuation of the company to around $13 billion. At one point on Wednesday, the company saw its stocks trading at around $46.24 per share. In fact, earlier in the day the company had opened up at $43.50 per share against its IPO price of $36, which has the earlier valuation at around $12 billion.
Following this, Mathrubootham took to Twitter to express is gratitude to his customers, employees, investors and partners for the role they played in bringing the company to the position it currently inhabits.
The tweet read: “Today is a dream come true for me – from humble beginnings in #Trichy to ringing the bell at @Nasdaq for the FreshWorks IPO. Thank you to our employees, customers, partners, and investors for believing in this dream. #Freshworks #IPO #NASDAQ.”
As a result of its stellar achievements, even the employees of the company benefitted from it through robust returns. Freshworks has around 4,300 employees with over 76 per cent of them holding shares in the company. Following the listing and the IPO, this translated to over 500 employees becoming crorepatis with around 70 of them being under the age of 30.
The founder stated that the company had a unique advantage in the industry thanks to the pool of top talent that it has cultivated across the cities of Chennai, Bengaluru and Hyderabad. Freshworks is was also backed by funding from investors such as Accel and Sequoia Capital.
Mathrubootham noted that the company — which has raised funding from investors like Accel and Sequoia Capital — has a unique strategic advantage with its access to top talent in India across Chennai, Bengaluru and Hyderabad.
“…We are growing at a pretty healthy clip at more than 45 per cent…We have more than 52,000 paying customers globally across 120-plus countries…more than 13,000 of those customers are paying us over USD 5,000 in annual recurring revenue,” he said.
“What I am super happy about is what this means for India SaaS. We have a whole next set of entrepreneurs and founders who are building companies that are scaling nicely, and we all want to share this dream of India as a prospect nation, and I’m excited to see the next set of companies go public, and we want to see more global product companies from India,” he said.
Following the listing and the massive round of applause that the company got all around on social media, Sequoia India tweeted: “Girish has always had the audacity to dream big and hire high-calibre talent ahead of the company’s growth curve. ‘You don’t have to be based in the US to attract global talent. It’s about having confidence that you have a world-beating product.’ #TylerSloat”
Sequoia India then went on to tweet, “We are fortunate to be partners in this industry-defining company. On behalf of everyone at Sequoia India, congratulations to this incredibly fresh and visionary #kudumba on today’s #NASDAQ IPO!”
“I am proud and humbled that @FreshworksInc is now trading on @Nasdaq as $FRSH. The journey to get here has taken 11 years, a lot of hard work, and loads of good fortune. Thank you to everyone who’s been on this journey with us. Here’s to life as $FRSH! #Freshworks #IPO #NASDAQ,” said Mathrubootham in another tweet on September 22, 2021.
It should be noted that the company had started its journey in 2010, in Chennai, with just six members on its team. By 2015 that number had grown to an impressive 500 employees. Safe to say, rapid growth and a market conquering business model are a core part of the success of this company.