Sector: Software-as-a-Service (SaaS) and Cloud Computing
Founded: 2010
Valuation: $3.4 billion (2024)

Company Overview: Freshworks, founded in 2010, is a leading software-as-a-service (SaaS) company that provides customer support, sales, and IT solutions to businesses. Headquartered in Chennai and San Mateo, Freshworks became one of India’s first SaaS companies to list on the Nasdaq in 2021.

Challenges encountered:

• Scaling operations across different geographies while managing diverse regulatory requirements in the US, Europe, and India.
• Balancing the cost of R&D with the need for profitability in the competitive SaaS sector.
• Navigating the IPO process while ensuring compliance with US financial reporting standards and investor expectations.

Solutions Implemented:

• Freshworks implemented centralized financial planning systems to ensure seamless compliance with international regulations and efficient capital allocation for R&D and expansion.
• The company adopted real-time financial reporting and automated budgeting tools, enabling better control over operational expenses and allowing for quick decision-making.
• Freshworks focused on building predictable revenue models by increasing customer retention rates, which helped stabilize cash flows during its rapid growth phase.

Outcomes Attained:

• Freshworks achieved a successful IPO on the Nasdaq, raising over $1.03 billion and securing a valuation of over $10 billion.
• The company improved profitability through optimized financial controls, helping it compete globally in the SaaS space.
• Freshworks’ sound financial management and focus on customer retention allowed it to maintain steady growth and ensure long-term sustainability post-IPO.