Silicon Valley software firm Freshworks raises $1. 13 B IPO

NEW YORK, Sept. 21 — Reuters -- Business software firm Freshworks, which counts Accel and Sequoia Capital among its major backers, on Tuesday priced its initial public offering much above the price target range to raise $1.03 billion, a source familiar with the matter said.

Freshworks priced 28.5 million shares at $36 per share, the source said, saying that the conversations are confidential. The IPO valued Freshworks at $10.13 billion.

San Mateo, California-based Freshworks joins a number of big names from the enterprise software business that have taken advantage of red-hot U.S. capital markets over the past 18 months.

Most IPOs on software companies in the period have been well-received by investors who see room for growth in the sector even after the pandemic, as the adoption of hybrid work models by companies across the world drive demand for enterprise software products.

Founded in Chennai, India in 2010, Freshworks helps businesses with customer management, including a messaging platform, an artificial intelligence driven chatbot for customer support and call center solutions that offer shorter wait times.

Freshworks shares are scheduled to make a market move on the Nasdaq on Wednesday under the symbol FRSH Morgan Stanley, J.P. Morgan and BofA Securities are the lead investors for the offering.