Freshworks Aims to Go Public With $9B Valuation

The software-as-a-service (SaaS) firm Freshworks Inc. hopes to hit a nearly $9 billion valuation in its initial public offering (IPO).

As Reuters reported on Monday (Sept. 13), Freshworks made that claim in a regulatory filing, saying that it would sell 28.5 million shares priced between $28 and $32, raising $912 million at the top end of the range.

According to the report, Freshworks is among several tech and software sector firms going public as the market gains increasing interest in these companies, which stand to benefit from the rise of post-pandemic hybrid work.

The company, which is used by more than 50,000 businesses in 120 countries, was valued at about $3.5 billion during its last funding round almost two years ago. Freshworks first mentioned the idea of going public through an IPO earlier this year, when the company announced that it had hit $300 million in yearly sales.

Read more: SaaS Firm Freshworks Hits $300M in Annual Sales, Eyes IPO

Founded in Chennai, India in 2010 (the company has since moved to San Mateo, California), Freshworks’ customer management products include Freshdesk Support Desk, which helps businesses interact with end users and respond to customer service requests across multiple channels. And Freshdesk Customer Success helps B2B subscription companies manage their customers.

Read more: Freshworks’ IPO Filing Points to Huge B2B SaaS Opportunity Within Disjointed CRM Market

The company, whose clients include Vice Media, Klarna and Delivery Hero, said in a recent SEC filing that its last 12 months’ revenue amounted to $308 million, a 49% increase year over year.

Remarking on the progression and development of its own products, Freshworks said: “We started with Freshdesk, our customer experience (CX) product, and later expanded our offering to include Freshservice, our IT service management (ITSM) product. We then expanded our product offering to include a more complete customer relationship management (CRM) solution, which includes sales force and marketing automation.”