Freshworks raises $100M | AI
Freshworks, a company that offers a variety of business software tools ranging from IT management to CRM for sales and customer support software, today announced that it has raised a $100 million funding round co-led by Sequoia and Accel Partners, with participation from CaptialG.
The company’s last funding round came in the form of a $55 million Series F round led by Sequoia in 2016. Today’s round brings the San Bruno-based company’s total funding to $250 million, at a valuation that’s now north of $1.5 billion, the company tells us. Freshworks also today noted that it now pulls in over $100 million in annual recurring revenue.
In addition to the new funding, Freshworks also today announced that it has hired a former AppDynamics VP of finance and treasury Suresh Seshardi as its CFO. Seshardi helped AppDynamics prepare for its IPO, so it’s a fair bet that he’ll do the same at Freshworks. AppDynamics, of course, famously didn’t actually IPO but was instead acquired by Cisco only hours before the team was supposed to ring the bell on Wall Street.
Freshworks CEO Girish Mathrubootham tells us we shouldn’t hold our breath waiting for his company to IPO. “Freshworks hasn’t started the IPO process but we do feel that we will eventually go public in the U.S.,” he said. “With that said, our primary focus right now is on growing the business and investing in our platform. When the timing is right, we’ll make that decision.”
Freshworks, which launched its first product back in 2010, also tells us that it plans to use the new cash to invest in its platform and especially in looking at how it can use AI to bring new innovations to its tools.
Current Freshworks users include the likes of Sling TV, Honda, Hugo Boss, Toshiba and Cisco. In total, the company’s tools are now in use by about 150,000 businesses, making it one of the larger SaaS providers you have probably never heard of.