Salesforce Rival Freshworks Reveals Revenue Increase in IPO Filing

Aug.27 (Reuters) – Business and customer engagement software company Freshworks Inc released its U.S. initial public offering on Friday, reporting an increase of nearly 53% of its revenues as more and more clients have signed up for its services.

Rival Salesforce.com Inc (CRM.N) revealed it had revenue of $ 168.9 million for the six-month period ended June 30 this year in a regulatory filing, up from 110.5 million dollars for the same period last year.

The net loss amounted to $ 9.8 million for the same period, down almost 83% from the previous year.

Freshworks has yet to set the terms of its offer, but Reuters said in April it could aim for a valuation of up to $ 10 billion. Read more

Freshworks, based in San Mateo, Calif., Joins a wave of announcements from the software and technology sector, most of which have been well received by investors who see room for growth even after the pandemic, while more as more companies adopting hybrid work are increasing the demand for such products.

Launched in 2010 as Freshdesk from the Indian city of Chennai by Girish Mathrubootham and Shan Krishnasamy, Freshworks raised its first fundraiser in 2011, the same year it recruited its first client, Atwell College in Australia.

Backed by investors such as Sequoia Capital and Tiger Global Management, Freshworks offers a suite of products that help businesses manage their customers, such as a messaging platform, an artificial intelligence-powered chatbot for customer support, and call center solutions that promise shorter wait times.

It also enables the automation of routine and repetitive tasks and the management of various HR functions such as hiring, onboarding and monitoring of employee data.

Freshworks said its technology is used by more than 50,000 companies, including Delivery Hero SE (DHER.DE), Swedish payments company Klarna, Cisco Systems (CSCO.O) and General Electric Co (GE.N).

Freshworks is considering listing on Nasdaq under the symbol “FRSH”. Morgan Stanley, JP Morgan and BofA Securities are the main underwriters of the offer.

(This story is passed on to correct a typo in the title)

Report by Juby Babu and Sohini Podder in Bengaluru; Editing by Michael Perry

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