Customer engagement software maker Freshworks is the latest entrant to join the Unicorn club, with existing investors Sequoia India and Accel Partners co-leading a $100 million funding round at a valuation of $1.5 billion.
The round, which also saw participation from existing investor Capital G, brings the total capital raised by the company to $250 million until now.
Freshworks co-founder and CEO Girish Mathrubootham also hinted that this will likely be the last private funding round for the company, indicating that a public offering may be in the offing in the future.
In a possible bid to aid this, Freshdesk has hired former AppDynamics Vice President of Finance & Treasury Suresh Seshadri as its chief financial officer. Seshadri had helped prepare AppDynamics for its IPO prior to its acquisition by Cisco in 2017.
“With the addition of Suresh leading our financial management and strategy toward a path of free cash flow break-even and our latest – and likely last – private funding round in place, we believe we have a unique opportunity to attract customers from around the globe who have been let down by legacy solutions.” Mathrubootham said.
“Freshworks has been riding an incredible wave of growth. Coming on board to work with Girish and the rest of the executive team is an incredible opportunity and I am confident that we are well-positioned to reach the next phase of Freshworks’ expansion.” said Seshadri.
Freshworks plans to use the funds raised to further grow its worldwide expansion and invest in its integrated SaaS platform.
“When we started Freshworks in 2010, we were a single-product company with a goal of offering better, easier-to-use customer service software than what was in the market. We’ve since scaled our company to $100M in annual recurring revenue and built a full SaaS platform where all of our products – such as Freshsales, Freshdesk, and Freshservice – work together seamlessly, without requiring additional integration resources or consultants to make the software simply work,” said Mathrubootham.
Founded in 2010, Freshworks competes with Zendesk, Salesforce, Helpshift and ServiceNow among others.
The company claims to cater to more than 150,000 businesses and organisations, including enterprises such as Honda, Bridgestone, Hugo Boss, University of Pennsylvania, Toshiba, Cisco and global small and medium business (SMB) customers.
Last month, ET had reported that Freshworks has crossed $100 million in annual recurring revenue, led by its flagship customer support product Freshdesk and continued growth in its IT services management software Freshservice and CRM software Freshsales.
Around 36% of its revenues come from larger customers and the remaining is from SMBs, Freshworks CEO Girish Mathrubootham had told ET at the time. He added that United States and Europe, including the UK, form around 40% each of its business.