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Enterprise software startup Freshworks nabs $100 million in funding at $1.5 Billion Valuation

    image credit : Freshworks

California headquartered enterprise and cloud based software startup Freshworks has now raised $100 million in a Series G funding round from Accel, Sequioa and Alphabet's CapitalG with the investment giving the 8 year old startup a valuation north of $1.5 Billion marking another entrant from the enterprise software space into the unicorn club with Freshworks now looking to expand its global footprint and further invest more into its Software-as-a-Service product ecosystem.

This valuation marks a double from the company's most previous $750 million valuation when its raised $55 million in a Series F funding round from Accel and Sequioa who returned to lead this round along with notable tech investor Tiger Global.





Freshworks now says it makes over $100 million in annual recurring revenue which represents a very remarkable milestone for the enterprise software startup which has already made 9 acquisitions since its start and offers several software products for sales CRM, customer support, customer messaging, applicant tracking, conversion optimization, call centers and IT service management.

Freshworks also counts the likes of Avast, Honda, Zomato, Cisco, Flipkart, Toshiba, Celexon and several other notable companies as customers for its software products with over 150,000 businesses in total using its products.

“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 - like Freshsales, Freshdesk, and Freshservice - work together seamlessly, without requiring additional integration resources or consultants to make the software simply work,” said Girish Mathrubootham, Co-founder and CEO, Freshworks in a newly issued press release.





Freshworks which has now raised $250 million in total also made a notable recent hire tapping AppDynamics VP of finance and treasury Suresh Seshardi for a CFO role in the company. Seshardi is known for preparing AppDynamics for its IPO which almost happened before a larger offer which led to a $3.7 Billion acquisition from Cisco just a short time before its team was set to ring the stock exchange bells.

Before AppDynamics went public, It was last valued at $1.9 Billion with a $184 million round of funding which comes as somewhat similar to Freshworks' funding round valuing the company at $1.5 Billion which might imply an IPO being next for Freshworks after this Series G round.

Suresh Seshadri, the company’s new CFO, said “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.”

Freshworks was founded in 2010 by entrepreneur duo Girish Mathrubootham and Shan Krishnasamy kicking off the idea after a bad customer experience due to a broken TV with the company scaling from there to being a notable enterprise software provider for a whole lot of global companies.





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