Covering IPOs, Healthcare and Technology Stocks

Andrei Zakharov

Algosun Global

Equity Bottom-Up

<ul>
<li>
<a href="https://www.smartkarma.com/entities/freshworks-inc" target="_blank" data-smartkarma-citation="entities:34147:1" rel="noopener">Freshworks (FRSH US)</a>  reported solid 2QFY22 results, and the company beat all key estimates, showed strong revenue growth of 37% YoY, and added ~1,800 net new customers. </li>
<li>Welcomed high-profile new customers such as Cloudera, Dynatrace, Sterling Bank, Thomas Cook, World Market, Angi Home, and more. </li>
<li>Shares of <a href="https://www.smartkarma.com/entities/freshworks-inc" target="_blank" data-smartkarma-citation="entities:34147:1" rel="noopener">Freshworks (FRSH US)</a>  have been exposed to heightened volatility lately, which we think provides long-term investors with an opportunity. </li>
</ul>



Freshworks (FRSH US)  reported solid 2QFY22 results, and the company beat all key estimates, showed strong revenue growth of 37% YoY, and added ~1,800 net new customers. 
Welcomed high-profile new customers such as Cloudera, Dynatrace, Sterling Bank, Thomas Cook, World Market, Angi Home, and more. 
Shares of Freshworks (FRSH US)  have been exposed to heightened volatility lately, which we think provides long-term investors with an opportunity. 


Confident In Growth Opportunities. Weak Q3FY22 Billings Guidance Does Not Change Our Bullish Thesis

<ul>
<li>Sequoia Capital India, one of the key shareholders of <a href="https://www.smartkarma.com/entities/freshworks-inc" target="_blank" data-smartkarma-citation="entities:34147:1" rel="noopener">Freshworks (FRSH US)</a> , made notable insider purchases in March. This is the biggest insider buying since IPO in 2021. </li>
<li>According to SEC filings, venture capital firm acquired ~5 million <a href="https://www.smartkarma.com/entities/freshworks-inc" target="_blank" data-smartkarma-citation="entities:34147:1" rel="noopener">Freshworks (FRSH US)</a>  shares at an average price of <strong>$17.38</strong> per share. </li>
<li>We believe that strong insider buying may indicate a bottom in <a href="https://www.smartkarma.com/entities/freshworks-inc" target="_blank" data-smartkarma-citation="entities:34147:1" rel="noopener">Freshworks (FRSH US)</a>  stock after significant multiple compression in the technology software sector. </li>
</ul>


Sequoia Capital India, one of the key shareholders of Freshworks (FRSH US) , made notable insider purchases in March. This is the biggest insider buying since IPO in 2021. 
According to SEC filings, venture capital firm acquired ~5 million Freshworks (FRSH US)  shares at an average price of $17.38 per share. 
We believe that strong insider buying may indicate a bottom in Freshworks (FRSH US)  stock after significant multiple compression in the technology software sector. 


Sequoia Capital India Acquired ~$87 Million Worth Of Freshworks Shares In March

APAC IPOs & Placements, Aequitas Research

Clarence Chu

APAC IPOs & Placements

IPOs and Placements coverage across Asia Pacific

Aequitas Research

We cover all listing across the Asia Pacific along with follow-up placements. As of Dec 2020, our team had covered 539 IPOs with a hit rate of 73.5% and 685 placements with a hit rate of 66.8%.

We combine fundamental bottom-up views with our proprietary quantitative framework to provide a holistic coverage across new listings and placements. Our coverage includes pre-IPO notes before the deal is launched, follow-up analysis once the deal is live and post-listing trading analysis as well.

Equity Capital Markets

RateGain Travel Technologies / Equity Capital Markets

<ul>
<li>
<a href="https://www.smartkarma.com/entities/rategain-travel-technologies" target="_blank" data-smartkarma-citation="entities:35265:1" rel="noopener">RateGain Travel Technologies (1920810D IN)</a> is looking to raise up to US$177m in its upcoming India IPO.</li>
<li>The deal will comprise a mix of primary and secondary shares, where the Promoters and a Pre-IPO investor, Wagner, are looking to pare down their stakes. </li>
<li>In our view, this listing being the first SaaS firm out of India, could garner investor interest which would aid listing sentiment as well.</li>
</ul>



RateGain Travel Technologies (1920810D IN) is looking to raise up to US$177m in its upcoming India IPO.
The deal will comprise a mix of primary and secondary shares, where the Promoters and a Pre-IPO investor, Wagner, are looking to pare down their stakes. 
In our view, this listing being the first SaaS firm out of India, could garner investor interest which would aid listing sentiment as well.


RateGain Travel Technologies IPO - First SaaS Listing in India and Could Be a Recovery Play

TMT & Consumer Independent Equity Research Analyst, Obex Capital Research

Aaron Gabin

TMT & Consumer Independent Equity Research Analyst

TMT & Consumer Independent Equity Research

Obex Capital Research

“Obex” is Latin for Barriers to Entry. Obex Capital Management’s investment philosophy is driven by an intense focus on which business model’s Barriers to Entry are able to withstand the ever increasing competitive disruption in the TMT and Consumer Sectors.

<ul>
<li>Founded in Chennai, India in 2010 with the idea of creating a “fresh” helpdesk product Freshworks has assembled a one-stop-shop for SMB customers for customer service, ITSM and CRM tools.</li>
<li>Its approach is to provide enterprise grade products at a ~25% discount to larger competitors.</li>
<li>The company has a similar approach to software as SolarWinds, which remains one of the most profitable software companies. </li>
</ul>


Founded in Chennai, India in 2010 with the idea of creating a “fresh” helpdesk product Freshworks has assembled a one-stop-shop for SMB customers for customer service, ITSM and CRM tools.
Its approach is to provide enterprise grade products at a ~25% discount to larger competitors.
The company has a similar approach to software as SolarWinds, which remains one of the most profitable software companies. 


Consumer Analyst / Channel Surveillance Specialist, Trudence Capital Advisors

Pranav Bhavsar

Consumer Analyst / Channel Surveillance Specialist

Trudence Capital Advisors

Trudence Capital Advisors Private Limited is a SEBI-registered Research Analyst, holding SEBI registration number INH000015747. Our firm is dedicated to providing independent and unbiased research on Indian mid to large-cap companies. Trudence Capital is known for its counter-consensus views, with a focus on forensic research and on-ground primary investigations. Our research approach is thorough, involving detailed analysis of accounting practices and governance, alongside extensive channel checks.

Independent & Unbiased Research

<ul>
<li>In this "Beyond 280", we speak to an Industry Channel with an objective to understand long term revenue growth potential for SaaS company like <a href="https://www.smartkarma.com/entities/freshworks-inc" target="_blank" data-smartkarma-citation="entities:34147:1" rel="noopener">Freshworks (FRSH US)</a>
</li>
<li>We also discuss how one should look into early lock-up releases. (One of the reasons we believe for recent stock price pressure)</li>
<li>Based on our discussion, we believe the opportunity size and growth potential is intact, weakness on account of events like lock-up releases could be attractive entry points. </li>
</ul>


In this "Beyond 280", we speak to an Industry Channel with an objective to understand long term revenue growth potential for SaaS company like Freshworks (FRSH US)

We also discuss how one should look into early lock-up releases. (One of the reasons we believe for recent stock price pressure)
Based on our discussion, we believe the opportunity size and growth potential is intact, weakness on account of events like lock-up releases could be attractive entry points. 


Beyond 280 | Freshworks (FRSH US) - Conversation with an Industry Channel

United States

Freshworks Inc. provides software as a service platform that enables small and medium-sized businesses to support customers through e-mail, phone, website, and social networks. The Company offers multi-product support, a knowledge base, self-service portal, community forums, and tools to leverage mainstream social media for customer support. Freshworks serves customers worldwide.

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Freshworks (FRSH US)

Confident In Growth Opportunities. Weak Q3FY22 Billings Guidance Does Not Change Our Bullish Thesis

Software has been a strong performing sector during the last two months, and Freshworks remains our topic across recent technology IPOs

Andrei Zakharov

Sequoia Capital India Acquired ~$87 Million Worth Of Freshworks Shares In March

We maintain our bullish view on Freshworks and see notable insider buying as a strong interest among key shareholders, including Sequoia Capital India

Andrei Zakharov

RateGain Travel Technologies IPO - First SaaS Listing in India and Could Be a Recovery Play

RateGain Travel Technologies (1920810D IN) is looking to raise up to US$177m in its India IPO. The listing will be the first SaaS listing in India.

Clarence Chu

Recent IPO Insights: Freshworks

Freshworks has assembled a one-stop-shop for SMB customers looking for customer service , ITSM and CRM tools priced at a ~25% discount to larger...

Aaron Gabin

Beyond 280 | Freshworks (FRSH US) - Conversation with an Industry Channel

We speak to a SaaS executive to understand Industry trends & early lock-up releases. We believe pricing pressure on account of events like lock-up...

Pranav Bhavsar

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