Freshworks valuation soars 3.5X in 15 months with $150 Mn fresh round

Software product companies are having a ball in India. Back to back rounds by Clevertap within six months and entry of Druva and Incertis in coveted Unicorn club with three-digit funding rounds are a testimonial of prosperity for B2B product companies in India. 

But when it comes to poster boy like Flipkart in consumer Internet space, Freshworks is a formidable and parallel player in B2B tech space. The firm has expanded its footprint in the US and looking to add 100 more employees across sales and engineering functions.

Meanwhile, it also has raised $150 million fresh funds from existing investors including Google, Sequoia and Accel Partners. According to a Moneycontrol report, the company has hit a valuation of $3.5 billion in the new financing round.

With the fresh proceeds, the California and Chennai-based firm has raised $400 million total risk capital across nine rounds. It’s worth noting that Freshwork’s valuation has jumped 3.5X in less than 15 months. In August 2018, it turned Unicorn with $100 million round co-led by Sequoia and Accel.

Besides the US, Europe and India are primary markets for the Girish Mathroobotham-led firm. Freshworks also has a presence in Australian, Japanese and the Middle East markets.

Freshworks offers a slew of software tools, including CRM for sales, customer support software, and IT management, among others, meant for businesses. Currently, the company uses over 1,50,000 organisations, including Cisco, Toshiba, Honda, and Hugo Boss. 

Since its inception in 2010, the company has acquired eight companies including Airwoot, Framebench, Konotor, Frilp. According to multiple media reports, the company is also planning a public offering in the next two years. Freshworks, indeed, is an outlier in B2B SaaS space from India along with Zoho, Druva and Clevertap.