Salesforce rival Freshworks valued at over $12 billion in debut

imageStock Markets36 minutes ago (Sep 22, 2021 01:01PM ET)

(C) Reuters. FILE PHOTO: A man types into a keyboard during a convention in Las Vegas, Nevada, U.S. on July 29, 2017. REUTERS/Steve Marcus

-Business software company Freshworks Inc was valued at $12.2 billion in its Nasdaq debut on Wednesday after shares opened 21% above the initial offering price, indicating strong demand for firms that have thrived during the pandemic.

Shares of the Salesforce.com (NYSE:CRM) rival opened at $43.50 compared with the IPO price of $36 per share.

Freshworks joins a wave of listings from the software and technology sector, most of which have been welcomed by investors who see room for growth as companies increasingly embracing the hybrid work model drive up demand for such products.

The company, launched from the Indian city of Chennai, has a suite of products that helps businesses with customer management, such as a messaging platform and an artificial-intelligence powered chatbot for customer support.

Founded by Girish Mathrubootham and Shan Krishnasamy, Freshworks raised its first round of funds in 2011 and got its first customer, the Atwell College in Australia, in the same year.

Venture capital firm Accel and New York-based technology investment giant Tiger Global Management were early investors in the company.

Freshworks said its technology is used by more than 50,000 companies, including high-profile names such as Delivery Hero SE, Swedish payments firm Klarna, Cisco Systems (NASDAQ:CSCO) and General Electric (NYSE:GE) Co.

On Tuesday, the company priced its IPO above the top end of the range to raise $1.03 billion. The San Mateo, California-based firm had earlier raised its price range, aiming to sell 28.5 million shares at between $32 and $34 each.

Morgan Stanley (NYSE:MS), J.P. Morgan and BofA Securities were the lead underwriters for the offering.

Salesforce rival Freshworks valued at over $12 billion in debut

Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.

Related Articles

Explainer-Americans wonder: Which COVID-19 booster is best?

(C) Reuters. FILE PHOTO: Vials labelled "Moderna, Johnson & Johnson, Pfizer-BioNTech...

Subscribe

Categories

Same Category

Explainer-Americans wonder: Which COVID-19 booster is best?

(C) Reuters. FILE PHOTO: Vials labelled "Moderna, Johnson &...

BMW to phase out fossil-fuel burning engines from main plant by 2024

Stock Markets25 minutes ago (Oct 22, 2021 01:11PM ET) (C)...

In corporate crackdown, U.S. SEC takes aim at executive pay

(C) Reuters. FILE PHOTO: Signage is seen at the...