India-founded Freshworks is eyeing an IPO in the U.S. The startup provides customer and employee experience software and could change the scope of the SaaS (software as a service) sector upon its debut.
When is the Freshworks IPO date, and what do we know about the company following its F-1 foreign registration statement with the SEC?
Freshworks filed with the SEC in August.
Freshworks filed its initial IPO paperwork with the SEC on Aug. 27. The company offers three main products—Freshdesk, Freshservice, and Freshsales. These products cater to customer experience, IT service management, and customer relationship management, respectively.
In the six months ending June 30, Freshworks saw its revenue double. The company has been seeing this growth trajectory fairly consistently. The cost of revenue and losses are both down, which is a good sign for the bottom line moving forward. Freshworks also gets most of its workforce in India, which decreases the cost of labor.
The Freshworks ticker is fresh and (almost) ready to trade.
Freshworks plans to go public on the Nasdaq under the ticker symbol "FRSH." The exchange welcomes tech-based startups like Freshworks.
FRSH stock will compete with real-world Freshworks competitors like Salesforce.com (NYSE:CRM), whose stock is up 251.63 percent over the last five years. Salesforce first went public in 2004, so its history on the market undoubtedly gives it an advantage.
Still, experts say that Freshworks has solid fundamentals that put it in a good position to take off once public.
Will Freshworks stock be a buy when it goes public?
Investors have yet to hear how many stocks Freshworks plans to sell and at what price. Those details will help traders form opinions about the IPO stock. However, it will be tied to a lockup period for the first few months. Since it isn't a SPAC or direct listing, this could give retail investors a chance to incur capital gains before employees or institutions sell-off.
Basing your decision on your own research and analysis, FRSH stock could provide an opportunity once it goes public. Girish Mathrubootham, the founder and CEO of Freshworks, wrote in the company's prospectus, "We weren’t founded in Silicon Valley. We didn’t target large enterprises. We didn’t have access to a been-there-done-that talent pool. We designed our products for the people actually using them. We offered a ‘fresh’ approach relying on efficient, product-led, low-cost and low-touch sales; and we targeted massive, underserved markets."
It will be interesting to see how the stock performs on a U.S. exchange, especially compared to blue-chip SaaS stocks Salesforce, Shopify, DocuSign, and Adobe.
When is the Freshworks IPO date?
Freshworks hasn't announced an IPO date yet, and it will likely be some time until that happens. It could come in the fourth quarter of 2021 or the first quarter of 2022. Once investors hear about details on the price range and, subsequently, a firm stock price, the IPO debut should be just days away.