Bangalore and Chennai: freshworks Became the first Indian software product company to be listed on Nasdaq The stock exchange is raising more than $1.03 billion from investors through its initial public offering at a market cap of $1.13 billion, fueling excitement among startup mavens, who wish to mark this milestone list as the first to be built outside India. Hope to open floodgates for mega product companies.

The Chennai-based San Mateo-based startup sold 28.5 million shares at a price of $36, the company said in a press release on Wednesday, pointing to a marketing range of $32-$34, the company said earlier this week . Strong investor interest.

“I’m really proud of how far we’ve come, but I’m really excited about what’s next for FreshWorks. We’re all part of something that’s really inspiring. We show the world What a global product company from India can achieve. The fact that we are doing this with NASDAQ in the US markets first is truly amazing. Today is day zero for Freshworks and the beginning of much more is,” said Girish Mathrubootham, Cofounder and CEO at FreshWorks.

Investors who backed FreshWorks as a startup – winner of ET’s Startup of the Year in 2016 – say the company’s listing on Nasdaq under the symbol FRSH will make it easier for the next set of Indian companies to target big .

Mohit Bhatnagar, managing director of Sequoia Capital, a venture firm that backs FreshWorks, said, “This is a backbone strengthening and provides immense confidence that we are going to be much bigger than India by building products for the world in India. Can build companies over $10 billion.”

Freshworks was valued at $3.5 billion when it raised $150 million in November 2019 from Sequoia Capital, CapitalG and Accel.

Freshworks founder Girish Mathrubootham started the company in 2010 when he decided to create an offer after reading an article on customer support and sales communication platform Zendesk’s customers who were unhappy after increasing prices by 60-300%. Saw the opportunity Mathrubhumi soon spoke to his friend and colleague of many years, Shan Krishnasamy, to offer his customers competitive and effective products at affordable prices.

The company raised its first $1 million in funding from Accel Partners in December 2011, and became the country’s first SaaS firm seven years later when it raised $100 million from Accel and Sequoia Capital as part of its seventh funding round. The price of which was higher. $1 billion, joining the likes of Udaan, Swiggy and Byju’s among other firms.

The listing will also benefit two-thirds of FreshWorks’ more than 4,300 employees who have employee stock options, a company with a philosophy of the motherland that is “optimized for the happiness” of its people.

Freshworks joins over a dozen odd Indian companies such as Infosys, Wipro, WNS, Dr Reddy’s and HDFC Bank to list on US stock exchanges. Infosys was the first Indian company to be listed on Nasdaq in 1999.

FreshWorks is also the latest to join a slew of venture-funded companies in India, which is also aggressively diversifying from private markets on the back of a stellar home listing by food technology platform Zomato in July.

Comparing Freshworks’ software product portfolio to that of the Apple iPhone for business software, CEO Mathubootham said that his company is “blending existing technology with integrated, intuitive and enjoyable experiences.”

“Prior to 2007, we were all using multiple devices – I personally had a Nokia cellphone, a Garmin GPS, a Sandisk MP3 player, and a Canon point-and-shoot camera. As consumers, we Look forward to giving up our gadgets for a single product with a better integrated, seamless and delightful experience,” wrote Mathrubhumi, a fan of actor Superstar Rajinikanth.

The company said it now has more than 52,000 customers and generated revenue of $308 million over the past 12 months, an increase of more than 40% while posting a net loss of $10 million over the same period.

Meanwhile, a wave of listings in the US by technology ventures such as Zoom, Snowflake, Asana and Palantir has been very well received in the backdrop of increasing digitization across the world, especially after the onslaught of the Covid-19 pandemic.

In addition, FreshWorks has given underwriters a 30-day option to purchase an additional 2,850,000 shares of Class A common stock at the initial public offering price less underwriting discount and commission.

Freshworks reported a 53% increase in its revenue to $169 million in the six months ended June 30, 2021, compared to $110 million in the same period last year. At the same time, the loss declined sharply by 83 per cent to $89 million.