Total amount raised
$484 Millions
Latest funding date
Location
Title
Freshworks has successfully raised significant funding over multiple rounds, attracting notable investors such as Steadview Capital and Accel. The company offers a suite of AI-powered software solutions designed to enhance customer and IT service experiences.
Keep reading to explore the intricacies of Freshworks' fundraising journey and the investors backing this innovative platform.
What Is Freshworks?
Freshworks, founded in 2010 in San Mateo, California, is a company that builds and delivers online cloud-based software-as-a-service (SaaS) solutions. The company was established by Achuthanand Tanjore Ravi, Girish Mathrubootham, Shan Krishnasamy, and Vijay Shankar.
Freshworks provides innovative customer engagement software for businesses of all sizes. Their SaaS products offer a 360-degree view of the customer, are easy to use, and provide a quick return on investment. The products include solutions for IT service management, customer support, sales CRM, messaging, and marketing automation.
With a workforce of 1001-5000 employees, Freshworks aims to simplify service delivery for businesses worldwide through its AI-powered tools. The company’s suite of software products includes Freshdesk, Freshservice, Freshchat, Freshsales, and Freshmarketer.
How Much Funding Has Freshworks Raised?
- Series A
- Amount Raised: $1M
- Date: December 2011
- Lead Investors: Accel
- Valuation at Round: Not publicly disclosed
- Motivation Behind the Round: To develop and launch their initial product offerings.
- Series B
- Amount Raised: $5M
- Date: April 2012
- Lead Investors: Tiger Global Management
- Valuation at Round: Not publicly disclosed
- Motivation Behind the Round: To expand their product line and scale operations.
- Series C
- Amount Raised: $7M
- Date: November 2013
- Lead Investors: Accel
- Valuation at Round: Not publicly disclosed
- Motivation Behind the Round: To enhance their customer support software and increase market reach.
- Series D
- Amount Raised: $31M
- Date: June 2014
- Lead Investors: Tiger Global Management
- Valuation at Round: Not publicly disclosed
- Motivation Behind the Round: To accelerate growth and invest in marketing and sales efforts.
- Series E
- Amount Raised: $50M
- Date: April 2015
- Lead Investors: Tiger Global Management
- Valuation at Round: Not publicly disclosed
- Motivation Behind the Round: To further develop their SaaS platform and expand globally.
- Series F
- Amount Raised: $55M
- Date: November 2016
- Lead Investors: Peak XV Partners
- Valuation at Round: Not publicly disclosed
- Motivation Behind the Round: To enhance product features and support international expansion.
- Series G
- Amount Raised: $100M
- Date: July 2018
- Lead Investors: Accel, Peak XV Partners
- Valuation at Round: Not publicly disclosed
- Motivation Behind the Round: To invest in AI capabilities and improve customer experience.
- Series H
- Amount Raised: $150M
- Date: November 2019
- Lead Investors: Accel, CapitalG, Sequoia Capital
- Valuation at Round: $3.5 billion
- Motivation Behind the Round: To invest in R&D and prepare for a potential IPO.
- Secondary Market
- Amount Raised: $85M
- Date: January 2020
- Lead Investors: Steadview Capital
- Valuation at Round: Not publicly disclosed
- Motivation Behind the Round: To provide liquidity to early investors and employees.
Freshworks has raised a total of $534M with a current valuation of $3.5 billion.
Key Investors
- Accel
- Details: Accel is a venture capital firm that invests in early and growth-stage technology companies. Founded in 1983, it has offices in Palo Alto, London, and Bangalore.
- Investment Focus Areas: Technology, software, internet, mobile.
- Notable Investments: Facebook, Dropbox, Slack.
- Tiger Global Management
- Details: Tiger Global Management is an investment firm that focuses on public and private companies in the global internet, software, consumer, and financial technology sectors. It was founded in 2001 and is based in New York.
- Investment Focus Areas: Internet, software, consumer, financial technology.
- Notable Investments: Spotify, Stripe, LinkedIn.
- Sequoia Capital
- Details: Sequoia Capital is a venture capital firm that invests in early and growth-stage companies across various sectors. Founded in 1972, it has backed companies that now control $1.4 trillion of combined stock market value.
- Investment Focus Areas: Technology, healthcare, consumer, financial.
- Notable Investments: Apple, Google, Oracle.
- CapitalG
- Details: CapitalG is the growth equity investment arm of Alphabet Inc. (formerly Google Capital). It focuses on late-stage technology companies and provides them with access to Google’s expertise and resources.
- Investment Focus Areas: Technology, growth-stage companies.
- Notable Investments: Airbnb, Stripe, Lyft.
- Steadview Capital
- Details: Steadview Capital is a global investment firm focused on long-term investments in public and private companies. It was founded in 2009 and is based in Hong Kong.
- Investment Focus Areas: Public and private companies across various sectors.
- Notable Investments: Not publicly disclosed.
What's Next for Freshworks?
Freshworks is poised to capitalize on the growing demand for integrated business tools with its "Customer-for-Life Cloud," which unifies customer data across marketing, sales, support, and customer success. This platform aims to provide a comprehensive view of customer interactions, enhancing the overall customer experience. With a valuation of $3.5 billion and a recent $150 million Series H funding round, the company is well-positioned to expand its market reach and product offerings.
As Freshworks prepares for a potential IPO, it is also exploring strategic acquisitions to fill gaps in its technology and talent. The company’s focus on research and development will be crucial in maintaining its competitive edge. However, challenges such as integrating acquired companies and meeting investor expectations loom large. Successfully navigating these hurdles will be key to sustaining growth and achieving long-term success.
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