Freshworks files documents for listing in US; looking to raise $100 mn

Founder thanks Superstar Rajnikanth for being an inspiration

Girish Mathrubootham, founder of Freshworks, thanked actor Rajnikanth as it filed its initial documents for listing in the US market. The company is looking to raise $100 million.

Mathruboothamm, a self-confessed Rajnikanth fan in the post script of the S-1 filing said: “The code name of our IPO was Project Superstar, named after the most successful movie star from Tamil Nadu, Rajnikanth. I want to express my love and gratitude to him for being my maanaseega Guru.”

It is a well known fact that Mathrubootham has booked entire cinema halls for Freshwork employees to see the actor’s newly released movies. In the filing he said that the actor has been an mentor and an inspiration. While explaining the word maanaseeha guru he said: “There is no comparable word in English word to express what this means. It is a mentor; a role model that lives in your mind from whom you learn a lot by watching from afar. SuperStar is a man who is loved and worshipped by millions of fans globally. He is immensely successful yet humble and down to earth. Thank you, Thalaivaa!”

Freshworks is one of the earliest success stories of Indian startup in the software-as-a-services (Saas) segment. The segment has seen immense interest from investors with many of the players joining the unicorn list this year, Freshwork’s IPO has been the most awaited one.

The company in a statement said that it publicly filed a registration statement on Form S-1 with the U.S. Securities and Exchange Commission relating to a proposed initial public offering of its Class A common stock. The number of shares to be offered and the price range for the proposed offering have not yet been determined. Freshworks intends to list its Class A common stock on the Nasdaq Global Select Market under the ticker symbol "FRSH".

According to the filing the company has 52,000 customers and reported revenue of $308 million (LTM) as of June 30, 2021. Freshworks customers in the $5,000 ARR category is over 13,000.

The company had raised funds last in 2019. It had raised $150 million in a series H round which brought the company’s total fund raised to around $400 million. This deal valued Freshwork at $3.5 billion.

The founders letter as part of the S-1 filing tracks the growth of the company from a 700 sq.ft warehouse in Chennai to disrupting the customer relationship management (CRM) market. He also talks about his dream to be a disruptive player in the CRM market by breaking down the silos of marketing, sales, and customer support with a unified customer cloud.

Talking about his vision, the letter says that the company has a vision to create an iPhone moment in business software by blending existing technology with unified, intuitive, and delightful experiences. Just as the iPhone freed users from the hassles of carrying separate devices, we envision a new product experience that breaks down data silos and creates unified experiences, said the letter.

“One thing I learned from dreaming in increments is that patience is critical. We’re designing products now for a future where businesses are ready to embrace our vision of a unified customer cloud - and someday, a unified employee cloud. In the meantime, we continue to execute, build our business, and focus on delighting our customers,” said Mathrubootham.

Morgan Stanley, J.P. Morgan and BofA Securities will act as lead book-running managers for the proposed offering. Jefferies and Barclays will act as book-running managers for the proposed offering.