Freshworks IPO: Everything you need to know about Freshworks

Freshworks, which provides integrated software solutions for companies, raised more than $1 billion in its September 2021 IPO. That gave the Salesforce rival a valuation in excess of $10 billion dollars. Read on for more on this story.

Crypto 10

How much is Freshworks worth?

The business software provider Freshworks priced its initial public offering well above the target range to raise $1.03 billion, valuing the rival to Salesforce at $10.13 billion.

So-called "hybrid working" - in which office staff combine office visits with working from home - means demand for its products remains high.

Freshworks priced 28.5 million shares at $36 per share. It had earlier expected to raise $969 million at the top end of its increased price range of $32 to $34 per share but the IPO proved even more popular than those adjusted expectations.

Freshworks was founded in Chennai, India but is now headquartered out of San Mateo, California. It joins a number of big names from the enterprise software business that have taken advantage of US capital markets showing a healthy appetite for this space.

Most software IPOs in 2020 and 2021 have been warmly received by investors who see room for growth in the sector even after the pandemic.

Freshworks shares are trading under the symbol "FRSH" on the NASDAQ.

How to trade stocks at City Index

You can trade stocks with City Index using spread-bets or CFDs, with spreads from 0.1%. Follow these easy steps to start trading now.

  1. Open a City Index account or log-in if you’re already a customer.
  2. Search for the company you want to trade on our award-winning platform.
  3. Choose your position and size, and your stop and limit levels.
  4. Place the trade

Did you know? Our award-winning platforms and mobile apps offer advanced tools, charting and multi-device trading. 

Try out a demo account (UK)
Try out a demo account (AU)
Try out a demo account (SG)

What does Freshworks do?

Operating with 13 global bases, Freshworks is one of the new breed of software-as-a-service companies that aims to take the pain out of tech for business customers.

It claims to build tech that “works for everyone, making it easy for IT, customer service, sales, marketers and HR to do their job and delight their customers.”

Freshworks is particularly adept at customer management, hosting messaging platforms and an AI-powered chatbot for customer support.

Its 50,000 customers include Bridgestone, Klarna, ITV and Vice Media.

Having been founded in 2010 by Girish Mathrubootham and Shan Krishnasamy, Freshworks has come a long way since its launch out of Chennai, one of India's major tech hubs.

How does Freshworks make money?

Freshworks makes money through the software-as-a-service model, an increasingly popular method of delivering tech to customers.

Software-as-a-service provides massive advantages compared to installation-only software as the tech is managed on the cloud, updated automatically and is largely virus-proof.

As of September 2021, the UK-facing site of Freshworks charges £12, £35 or £60 a month depending on a customer’s depth of requirements.

Add-ons are available including chatbot sessions, as well as packages for employees working in the field who may need to log in from a wide range of IP addresses and requiring additional functionality.

What is Freshworks’ business strategy?

Freshworks has made expansion of its partner network a key element of its growth strategy, according to the IPO prospectus filed with the U.S. Securities and Exchange Commission.

It plans to invest more money and resources into growing its channel partnerships. It already has relationships with 400-plus channel partners around the world.

It also has deals with around 350 independent software vendors, plus integrations with platforms such as Slack and TeamViewer.

In a statement, Freshworks said: “We believe that continued growth in our business is dependent upon identifying, developing, and maintaining strategic relationships with additional channel partners that can drive substantial revenue.”

Freshworks has been quiet on the acquisition front since July 2020, when it bought up its most recent company. That was Flint, an IT orchestration and cloud management platform.

Is Freshworks profitable?

It is unclear whether the entire Freshworks operation has achieved profitability as yet, but annual revenue is growing rapidly year-on-year.

In 2020, it surpassed $300 million in annual subscription revenue for the first time, up approximately 40% year-on-year. Customers in healthcare, education and government were quick to sign up to subscriptions.

The Indian wing of the company, Freshworks Technologies Pvt Ltd, has been profitable since 2018.

Board of Directors of Freshworks

  • Girish Mathrubootham, Co-founder and CEO
  • Roxanne S. Austin, President and CEO of Austin Investment Advisors
  • Johanna Flower, former Chief Marketing Officer of CrowdStrike
  • Sameer Gandhi, a partner of Accel, a venture capital firm,
  • Randy Gottfried, former Chief Financial Officer of AppDynamics
  • Zachary Nelson, former Chief Executive Officer at NetSuite
  • Barry Padgett, Chief Operating Officer for Amperity

More from IPO


This report is intended for general circulation only. It should not be construed as a recommendation, or an offer (or solicitation of an offer) to buy or sell any financial products. The information provided does not take into account your specific investment objectives, financial situation or particular needs. Before you act on any recommendation that may be contained in this report, independent advice ought to be sought from a financial adviser regarding the suitability of the investment product, taking into account your specific investment objectives, financial situation or particular needs.

StoneX Financial Pte. Ltd., may distribute reports produced by its respective foreign entities or affiliates within the StoneX group of companies or third parties pursuant to an arrangement under Regulation 32C of the Financial Advisers Regulations. Where the report is distributed to a person in Singapore who is not an accredited investor, expert investor or an institutional investor (as defined in the Securities Futures Act), StoneX Financial Pte. Ltd. accepts legal responsibility to such persons for the contents of the report only to the extent required by law. Singapore recipients should contact StoneX Financial Pte. Ltd. at 6826 9988 for matters arising from, or in connection with the report.

In the case of all other recipients of this report, to the extent permitted by applicable laws and regulations neither StoneX Financial Pte. Ltd. nor its associated companies will be responsible or liable for any loss or damage incurred arising out of, or in connection with, any use of the information contained in this report and all such liability is hereby expressly disclaimed. No representation or warranty is made, express or implied, that the content of this report is complete or accurate.

StoneX Financial Pte. Ltd. is not under any obligation to update this report.

Trading CFDs and FX on margin carries a high level of risk that may not be suitable for some investors. Consider your investment objectives, level of experience, financial resources, risk appetite and other relevant circumstances carefully. The possibility exists that you could lose some or all of your investments, including your initial deposits. If in doubt, please seek independent expert advice. Visit for the complete Risk Disclosure Statement.