BENGALURU: Software-as-a-service (SaaS) unicorn, Freshworks, will raise up to $912 million in the upcoming IPO on Nasdaq stock exchange at a reported $9 billion valuation.
The California-headquartered firm informed the US Securities and Exchanges Commission in a filing on Monday that it is planning to issue 28.5 million shares in the price range of $28-$32, aggregating to a total raise between $798-912 million.
2021 has been a watershed year for the start-up ecosystem with the new-age firms lining up to list on bourses amidst huge jump in the number of retail investors as well as peaked interest from overseas funds.
During the last fundraise in 2019, the SaaS start-up was valued at$ 3.4 billion, as per data sourced from Crunchbase, with Sequoia Capital as the lead investor.
Freshworks intends to use the net proceeds from the shares sale during its IPO for general corporate purposes, including working capital, operating expenses, and capital expenditures.
The company said that it is also looking to acquire complementary businesses, products, services, or technologies. Freshworks will list on the stock exchanges under the symbol FRSH.
The SaaS unicorn said in its prospectus that its last twelve months revenue (LTM) was $308 million with a strong 49% growth.
The customer base, as per the filing, is 52,500 with more than 1,300 clients generating revenue of over $5,000 annually.
Despite incurring a net loss of $10 million LTM, the company sees a lot of headroom for growth in the SaaS industry with an addressable market size of 120 billion.
The unicorn’s terms of share sale
The California-headquartered firm is planning to issue 28.5 million shares in the price range of $28-$32, aggregating to a total raise between $798-912 million.