Freshworks Hires Morgan Stanley As Lead Bank For US IPO

India SaaS unicorn Freshworks has reportedly hired investment banks to prepare for its first public offering (IPO) in the United States.

According to Reuters, which first reported progress, the IPO could cost Freshworks at around $ 10 Bn. At its headquarters in San Mateo, California, Freshworks has hired Morgan Stanley to lead the IPO, which is likely to take place in the next few months, and he wants to transfer his shares to Nasdaq, sources said.

Founded in 2010 by Girish Mathrubootham, Shan Krishnasamy and Vijay Shankar, Freshworks provides software to engage new business customers of all sizes making it easier for groups to find, close, and retain their customers for life. The company says its SaaS products offer 360-degree customer views, are ready to go, easy to use, and offer instant benefits to investment.

The company has more than 150K customers worldwide, including NHS, Honda, Rightmove, Hugo Boss, Citizen Advice, Toshiba, Cisco, and others.

In February, it was reported that Freshworks had exceeded the $ 300 Mn ARR (double annual revenue) mark, a key metrics used by software-as-a-service (SaaS) or subscription businesses, by 2020 using Covid’s unprecedented economic times.

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In 2020, SaaS unicorn introduced Freshworks CRM, which integrates data into an integrated customer data platform for personal customer engagement, advanced lead conversion and sales growth.

Although a number of businesses have stalled as a result of the epidemic, Freshworks has introduced new product launches and procurement strategies to accelerate artificial intelligence (AI) involvement in its businesses. The company has also expanded its top team to promote its next phase of growth.

Apart from this, it also received two items last year – AnsweriQ in February and Flint in July.

In a recent interview with Bloomberg, Mathrubootham stated that the company does not have any immediate plans to disclose, but the down-to-earth options include initial public offering (IPO), contract with a specialized discount company, direct list or raise additional funds from private investors.

According to a report by Bain & Company, Indian SaaS companies have the potential to hold a 7-9% share in the global SaaS market by 2022. Companies such as Zoho, Druva, Icertis and Freshworks have led the space in India, with SaaS firms ready to reach between $ 18 Bn to $ 20 Bn in revenue by 2022.