Freshworks IPO creates more than 500 crorepatis in India, majority below 30
By Lokmat English Desk | Published: September 23, 2021 06:00 PM2021-09-23T18:00:00+5:302021-09-23T18:00:00+5:30
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Indian software-as-a-service (SaaS) firm Freshworks made its trading debut on US stock exchange Nasdaq on Wednesday and it was a strong one.
The company was valued at USD 12.2 billion after it opened 21 per cent above the initial offering price of USD 36 apiece Shares of Freshworks opened at USD 43.5.
A couple of months ago, this reporter asked Freshworks founder and CEO Girish Mathrubootham if he, too, would offer BMW bikes to hire engineers, something that fintech BharatPe had announced amidst the intense war for tech talent. “No, we will equip them so that they can buy them on their own,” he responded, without hesitation.
Now,Mathrubootham may have pulled that off with Freshworks' Nasdaq listing. The stellar market debut has not only enriched Mathrubootham and early investors such as Accel and Sequoia but also turned hundreds of Freshworks employees into millionaires.
Our employees are also our shareholders. This IPO has allowed me the opportunity to fulfil my responsibility as a CEO to early shareholders, both VC investors and employees, who believed in the dream of Freshworks.
We needed all the trust and belief of the early employees and investors, who joined us and believed in the dream. As CEO, it is immensely fulfilling for me to finish my responsibility as I take on the new responsibility of public investors who have now invested in the future of Freshworks," Mathrubootham said in an interview with Moneycontrol hours after ringing the Nasdaq bell.
"Seventy-six percent of our employees hold shares. The number was higher, at 90 percent, but because we have been hiring so many people recently, it is 76 percent. For our employees in India, we have more than 500 crorepatis and 70 of them are under the age of 30. They passed out of college a few years ago and they fully deserve it," he added.
Freshworks, which is the first Indian software-as-a-service firm to go public on the US stock exchange, was last valued at $3.5 billion, when it raised $150 million in financing from investors such as Sequoia Capital, CapitalG and Accel in November 2019.
