Freshworks Hikes IPO Target After Stronger Investor Demand
The Silicon Valley software startup has increased its price range for shares to $32 to $34.
(Bloomberg) -- Freshworks Inc. is raising the price for its initial public offering after stronger-than-anticipated demand from investors.
The Silicon Valley software startup has increased its price range for shares to $32 to $34, Freshworks said in a filing with regulators on Monday. That would raise as much as $969 million.
The company boosted revenue about 40% last year after the pandemic prompted businesses to go digital, and sales continue to grow in the first half of 2021 while its net loss shrank. Freshworks had previously announced it would raise as much as $912 million in an IPO that would value the startup at roughly $9 billion.
Freshworks was founded in India and moved to Silicon Valley to be closer to customers. Now based in San Mateo, California, the company retains a substantial workforce in the southern Indian city of Chennai. In an August filing with the U.S. Securities and Exchange Commission, founder Girish Mathrubootham likened Freshworks software to the iPhone, saying businesses shouldn’t have to rely on multiple tools to engage with customers.
Affiliates of Accel India and others of Tiger Global Management each control more than a quarter of the company’s Class B shares.
The IPO is being led by Morgan Stanley, JPMorgan Chase & Co. and Bank of America Corp. Freshworks is seeking to list its shares on the Nasdaq Global Select Market under the symbol FRSH.
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