Chennai and San Mateo-based SAAS (Software as a Service) firm, Freshworks, has confirmed that it received a “secondary transaction” from an “earlier investor” following its Series-H funding in November 2019.
“Our Series-H funding closed in November 2019. As we announced at the time, the primary investment was for $150 million,” said a statement issued by a company spokesperson, in response to a query by CNBC-TV18.
“There were also some secondary transactions that were made by some of our earlier investors. Due to confidentiality terms, we can’t go into further details,” the statement added.
The company was responding to reports that alternative investment firm Steadview Capital had bought out a minority stake in India’s latest unicorn entrant, Freshworks, for $ 85 million in January 2020. A leading business daily quoted Steadview Capital’s managing director, Ravi Mehta, who confirmed the transaction.
The move meant that Steadview out some of Freshworks’ angel investors. Neither Freshworks nor Steadview has divulged which of these early-stage investors have had their stake bought out.
‘IPO only when the time is right’
While acknowledging the transaction, the unicorn start-up — now valued at a whopping $ 3.5 billion — stopped short of confirming that it was going public anytime soon. A news website claimed that Freshworks was looking at a July 2021 timeline to issue an IPO, and could look to list itself on the NASDAQ.
“We are actively focusing on building the business, driving growth in new markets, and strengthening our position in existing markets,” said the Freshworks statement, “We will aim for an IPO if and when a public offering proves opportune for the business.”
First Published: IST