The Sprinklr IPO: what you need to know

Sprinklr is listing on Wednesday, seeking to raise $361 million. Find out everything you should know about Sprinklr before it lists – including its valuation, profits and competition.

Facebook

What is Sprinklr?

Sprinklr is a tech company which sells a software as a service (SaaS) customer experience management platform. The company’s product (also called Sprinklr) is a package deal for companies, that combines five different products: marketing, advertising, research, care and engagement.

Sprinklr is a way for companies to access all their advertising and communication channels in one place, from social media to text messages, instant messaging and blogs. They can then analyse any engagement data and feedback to create completely tailored user advertising.

When is the Sprinklr IPO?

Sprinklr's IPO is set for Wednesday June 23, when it will start trading on the NYSE under the ticker CXM. The company plans to offer 19 million shares at $18 to $20 each, which would raise approximately $361 million and value the company at $5 billion. 

Founder and CEO Ragy Thomas has always been very clear about Sprinklr’s intentions to list but said the Covid-19 had potentially delayed their plans. The new S-1 filing is a good indication the company’s timeline has moved up. While we have no date for Sprinklr’s IPO, back in September 2020, Thomas said it would be within ‘12 to 18 months’.

How to trade Sprinklr shares

When Sprinklr lists, you’ll be able to trade its shares in the same way you would any other publicly-traded company on the stock market.

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

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

How much is Sprinklr worth?

Sprinklr’s IPO is expected to value the company at around $5 billion. It's previous valuation puts it at $2.7 billion. This followed a $200 million cash infusion from private equity firm Hellman & Friedman in September 2020. In addition to their primary round of Sprinklr share purchases, Hellman also bought $300 million in secondary shares of Sprinklr.

Sprinklr has raised approximately $585 million since it was founded in 2009.

Is Sprinklr profitable?

Sprinklr ended 2020 with $400 million in annual recurring revenue – a figure used to measure revenue for businesses that are contract based – according to CEO Ragy Thomas.

It’s also worth noting that Sprinklr also has $150 million in convertible-at-IPO debt from investment firm Sixth Street Partners.

How does Sprinklr make money?

Sprinklr makes money by selling purpose-built customer experience management platform to customers. It has over 1,000 corporate clients, including TikTok, Facebook, Prada, Cisco, Microsoft and Nike.

During the Covid-19 pandemic, Sprinklr took on a government contract in India, to assist with tracking. However, it was accused of compromising patient data – a claim that was later found to be false.

What is Sprinklr’s business model?

Sprinklr’s business model is based on going ‘beyond social media’ and providing a completely comprehensive online media presence. It aims to become the one-stop tool for businesses looking to improve their paid social advertising, brand advocacy, user interactions and data segmentation.

Despite Covid-19, the company has seen significant customer growth, which has led to its expansion in R&D and other areas. Sprinklr plans to use the funds raised at IPO to fuel its global expansion.

It’s already bought 12 companies that have each brought new functionality to the original Sprinklr platform. These include:

  • Dachis Group, a company focused on employee advocacy, competitive intelligence, content marketing and social media consultancy – the deal finished in March 2014
  • TBG Digital, Facebook’s largest ad buying clients in August 2014, which was seen as solidifying Sprinklr’s paid advertising arm
  • Branderati, a brand advocacy group, in September 2014
  • NewBrand, a text analytics company, acquired in June 2015
  • Nanigans’, an advertising business it acquired in December 2019

Despite its positioning as a social media expert, Sprinklr got itself in some hot water in the week following its SEC filing, after a group of employees were said to have harassed another social media professional via Twitter.

The situation seems to have resolved itself, after Sprinklr announcing the comments made were not representative of the company’s views, and the female Twitter user in question stating she was moving on.

However, it has brought up a wider conversation about Sprinklr’s commitment to diversity and inclusion, particularly its treatment of women in the workplace – and on social media.

Who are Sprinklr’s competitors?

While Sprinklr is considered a global leader in customer experience management (CXM), there are a huge range of alternative applications and platforms out there. Big names in the industry include Adobe, Salesforce, Hootsuite and Sprout Social.

Who owns Sprinklr?

Sprinklr is currently owned by founder Ragy Thomas, who began the company in his spare bedroom in 2009. Other investors in Sprinklr include private equity Hellman & Freidman, Singapore-based investment firm Temasek, and ICONIQ Capital.

Who are the executives and directors of Sprinklr?

Name

Position

Ragy Thomas

Founder and CEO

Pavitar Singh

Chief Technology Officer

Chris Lynch

Chief Financial Officer

Luca Lazzaron

Chief Revenue Officer

Vivek Kundra

Chief Operating Officer

Diane Adams

Chief Culture & Talent Officer

Dan Haley

General Counsel & Corporate Secretary

Grad Conn

Chief Experience Officer

Carlos Dominguez

Vice-Chairman of the Board & Chief Evangelist

John Chambers

Founder and CEO JC2 Ventures

Yvette Kanouff

Partner JC2 Ventures

Matthew Jacobson

General Partner ICONIQ

Neeraj Agrawal

General Partner Battery Ventures

Ed Gillis

Business Consultant and Private Investor

Tarim Wasim

Partner Hellman & Friedman (H&F)


Disclaimer

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 cityindex.com.sg for the complete Risk Disclosure Statement.