PYMNTS-MonitorEdge-May-2024

Business Software Firm Freshworks Hikes IPO Price Range

Software Firm Freshworks Hikes IPO Price Range

Freshworks has raised the target price range for its upcoming initial public offering (IPO), now potentially looking at a $9.6 billion valuation, Reuters reported.

The company, based in California, works in business and consumer engagement software.

The company expects to raise $969 million at the top end of its price range, which will now be $32 to $34 per share, an increase from the $28 to $32 from earlier, according to the report.

In April, Reuters reported that Freshworks could be valued at almost $10 billion. The company’s tech is used by over 50,000 companies in 120 countries. Its customers include known names like Delivery Hero, Vice Media and Klarna, the Swedish payments firm. One of the company’s competitors is Salesforce.com.

The Freshworks IPO, per PYMNTS, could help the business software space move more toward a unified way to deal with customer experiences and away from the current fragmentation.

Read more: Freshworks’ IPO Filing Points to Huge B2B SaaS Opportunity Within Disjointed CRM Market

Freshworks has said its revenue was $308 million for the past year. The company has also been developing its own products like Freshdesk Support Desk, which enables communication across email, telephone and social media, and also allows for more customer management.

Then there’s an IT management service, Freshservice, and a customer relationship management offering that automates sales and marketing.

“In the business software world, companies are struggling with multiple tools for sales, marketing, customer support across multiple channels, bots and much more,” the company said earlier this month. “They often have disparate silos and disjointed information for a single customer — information sitting in multiple databases, none of which communicate natively with each other. This is true even if the tools come from the same vendor, and particularly if they came via acquisitions.”

PYMNTS-MonitorEdge-May-2024