Founded in Chennai, 2011, Freshworks is a customer service software maker headquartered in California. It hadn't been that famous company until recently when it went public with a $1 billion IPO on NASDAQ. It got listed on Wednesday and saw a bumper listing with a high of $46.67 against the issue price of $36. So what is the story of this company? How its 500 employees turned crorepatis overnight (out of which 70 are below aged 30)? let's see that in today's article.
How the employees of the company have turned crorepatis?
Accel India was the first institutional investor in the company back in 2011, it had invested $1 million. After which it supported the company in all its investing rounds. Currently, accel owns around 26% and Tiger Global which first invested in 2015 owns 25%. Sequoia Capital owns around 12%. Even Google has an 8% share in the company. 76% of employees own shares of the company, and with the IPO a superhit their wealth has shoot-up giving them worth of around 1 crore. The irony is a couple of months ago a reporter had asked Freshwork's co-founder and CEO Girish Mathrubootham if he would too offer BMW bikes to employees so as to retain young talents, that time he replied and we quote "No, we will equip them so that they can buy them on their own,". Seems he pulled it off..!!!!.
The road ahead for the Unicorn
With the IPO proceeds the company aims to use it for general corporate purposes, Operational expenses, and CAPEX. With the success of Freshworks, and earlier Snowflake, Asana, and Zoom, more founders around the world and especially those based in India can dare to dream the unthinkable.
So that was the Story of Freshworks. Let's see to what heights Freshworks could scale, but until then stay safe, stay updated.
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Disclaimer - Above information is to spread financial literacy. We are not SEBI registered financial advisors, kindly consult your financial advisor before making any investment decision.