Latest News from the World’s Leading Innovators

Granite Bay Capital

An innovation focussed investment company

Granite Bay Capital is an innovation focussed investment company with a deep focus on the companies at the leading edge of innovation across major themes such as AI, ubiquitous computing, sustainability, automation and longevity.

Thematic (Sector/Industry)

Headline Developments SpaceX (private) has completed the world’s first all-civilian mission to space, sending four passengers into Earth’s orbit without any professionally trained astronauts.  The mission lasted 72-hours, setting off on Wednesday last week and landing (below) on Saturday, 30 miles (48 km) east of the Kennedy Space Center in Florida (from where they launched).

Headline Developments SpaceX (private) has completed the world’s first all-civilian mission to space, sending four passengers into Earth’s orbit without any professionally trained astronauts.  The mission lasted 72-hours, setting off on Wednesday last week and landing (below) on Saturday, 30 miles (48 km) east of the Kennedy Space Center in Florida (from where they launched).

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

Equity Capital Markets

<a href="https://www.smartkarma.com/entities/freshworks-inc" target="_blank" data-smartkarma-citation="entities:34147:1" rel="noopener">Freshworks (FRSH US)</a> is not just India's first to be listed SaaS unicorn, but also among the fastest to reach $100 mn in ARR. 
In this Insight, we share our takeaways from speaking to close channels in two of India's most sorted unicorns Browerstack and soon to be listed <a href="https://www.smartkarma.com/entities/freshworks-inc" target="_blank" data-smartkarma-citation="entities:34147:1" rel="noopener">Freshworks (FRSH US)</a> with an objective to understand the Industry growth potential, availability of talent and why Freshworks could continue to grow at a scorching pace. 
For the sake of brevity, basic information about the FRSH's products and management overview will not be covered in this insight.

Freshworks (FRSH US) is not just India's first to be listed SaaS unicorn, but also among the fastest to reach $100 mn in ARR. 
In this Insight, we share our takeaways from speaking to close channels in two of India's most sorted unicorns Browerstack and soon to be listed Freshworks (FRSH US) with an objective to understand the Industry growth potential, availability of talent and why Freshworks could continue to grow at a scorching pace. 
For the sake of brevity, basic information about the FRSH's products and management overview will not be covered in this insight. 

Freshworks IPO | Channel Insight - Your SaaS SuperStar

Japan/Asia Long-Short, LightStream Research

Mio Kato

Japan/Asia Long-Short

Long-Short Analysis on Japan, Asia and the World

LightStream Research

LightStream conducts quantitatively rigorous and data-driven analysis with a focus on Japan and Asia.

We consistently cover the Tech, Consumer and Industrial sectors, and provide ECM and Events coverage more broadly.

We supplement traditional qualitative insights from company relationships with a robust quantitative foundation that examines as much historical data as is available.
We further refine the accuracy of our insights and calls through the use of alternative data to flesh out current trends, and through a valuation framework that emphasises non-superficial peer group selection and a proper attempt to understand the metrics and changes that have driven security valuations in the past.

Salesforce competitor Freshworks is riding the wave of hot Indian IPOs, looking to raise roughly $940m (depending on overallotment and pricing) at a valuation of roughly $9bn. The company’s positioning is interesting and growth has been rapid.

Salesforce competitor Freshworks is riding the wave of hot Indian IPOs, looking to raise roughly $940m (depending on overallotment and pricing) at a valuation of roughly $9bn. The company’s positioning is interesting and growth has been rapid.

Korea/Asia, Events, IPOs, Douglas Research Advisory

Douglas Kim

Korea/Asia, Events, IPOs

<a href="https://www.smartkarma.com/entities/freshworks-inc" target="_blank" data-smartkarma-citation="entities:34147:1" rel="noopener">Freshworks (FRSH US)</a> announced its <a href="https://www.pymnts.com/news/ipo/2021/freshworks-aims-to-go-public-with-9b-valuation/" target="_blank" rel="noopener">IPO price range</a> of $28 to $32 per share and it is selling 28.5 million shares. At the high end of this price range, the company would raise $912 million and it would be valued at nearly <a href="https://goodwordnews.com/what-to-think-of-freshworks-first-ipo-price-range-techcrunch/" target="_blank" rel="noopener">$9.6 billion</a> (assuming fully diluted shares outstanding of 300 million).<div class="content-highlight">
Our base case valuation of Freshworks is implied market cap of US$13.5 billion or US$45 per share, which is 41% higher than the high end of the IPO price range (US$32). Given the solid upside, we have a POSITIVE view of this IPO. 
Our valuation of Freshworks is based on an EV/S multiple of 22.6x using our estimated sales of $546 million in 2022. The EV/S multiple of 22.6x is based on 30% premium to the average multiple of the comps in 2022.
</div>

Freshworks (FRSH US) announced its IPO price range of $28 to $32 per share and it is selling 28.5 million shares. At the high end of this price range, the company would raise $912 million and it would be valued at nearly $9.6 billion (assuming fully diluted shares outstanding of 300 million).
Our base case valuation of Freshworks is implied market cap of US$13.5 billion or US$45 per share, which is 41% higher than the high end of the IPO price range (US$32). Given the solid upside, we have a POSITIVE view of this IPO. 
Our valuation of Freshworks is based on an EV/S multiple of 22.6x using our estimated sales of $546 million in 2022. The EV/S multiple of 22.6x is based on 30% premium to the average multiple of the comps in 2022.


<a href="https://www.smartkarma.com/entities/freshworks-inc" target="_blank" data-smartkarma-citation="entities:34147:1" rel="noopener">Freshworks (FRSH US)</a>is getting ready to complete its IPO in the US Nasdaq market in the coming weeks. Freshworks is a fast growing, customer engagement SaaS software company. The company provides comprehensive SaaS services for marketing, sales, and customer support services.<a href="https://capital.com/freshworks-ipo-is-the-fast-growing-software-startup-a-buy" target="_blank" rel="noopener"> Freshworks</a> was originally found in Chennai, India in 2010 by Rathna Girish Mathrubootham and Shan Krishnasamy. Today, Freshworks is headquartered in San Mateo, California and has customers in more than 120 countries. IPO could be valued at about $10 billion - The company has put an IPO placeholder value of $100 million but this is likely to get revised up substantially. Back in April 2021, Reuters mentioned that <a href="https://www.barrons.com/articles/freshworks-salesforce-rival-files-to-go-public-51630166548" target="_blank" rel="noopener">Freshworks</a> IPO could be valued at nearly $10 billion.<div class="content-highlight">Strong growth in sales and profit margins - The company has excellent financials highlighted by strong revenue and significant improvement in operating margins. The company generated revenue of 249.7 billion won in 2020, up 44.8% YoY and 168.9 billion won in 1H 2021, up 52.9% YoY. Operating margins improvement has been very impressive going from -22.5% in 2020 to -4.8% in 1H 2021, driven by higher sales base and lower R&amp;D and G&amp;A expenses as a percentage of revenues.</div>

Freshworks (FRSH US)is getting ready to complete its IPO in the US Nasdaq market in the coming weeks. Freshworks is a fast growing, customer engagement SaaS software company. The company provides comprehensive SaaS services for marketing, sales, and customer support services. Freshworks was originally found in Chennai, India in 2010 by Rathna Girish Mathrubootham and Shan Krishnasamy. Today, Freshworks is headquartered in San Mateo, California and has customers in more than 120 countries. IPO could be valued at about $10 billion - The company has put an IPO placeholder value of $100 million but this is likely to get revised up substantially. Back in April 2021, Reuters mentioned that Freshworks IPO could be valued at nearly $10 billion.Strong growth in sales and profit margins - The company has excellent financials highlighted by strong revenue and significant improvement in operating margins. The company generated revenue of 249.7 billion won in 2020, up 44.8% YoY and 168.9 billion won in 1H 2021, up 52.9% YoY. Operating margins improvement has been very impressive going from -22.5% in 2020 to -4.8% in 1H 2021, driven by higher sales base and lower R&amp;D and G&amp;A expenses as a percentage of revenues.

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.

Price Gauge
52-week Range	0.00 - 0.00
Market Cap (USDm)	0.00
P/E	0.00
Dividend (Yield)	0.00

Freshworks (FRSH US)

Weekly Innovation Review (WIRE) #50

SpaceX (private) has completed the world’s first all-civilian mission to space, sending four passengers into Earth’s orbit without any...

Granite Bay Capital

Freshworks IPO | Channel Insight - Your SaaS SuperStar

In this Insight, we share our takeaways from speaking to close channels in two of India's most sorted unicorns Browerstack and soon to be listed...

Pranav Bhavsar

Freshworks IPO – Fresh and Juicy

freshworks is riding the wave of hot Indian IPOs, looking to raise roughly $940m at a valuation of $9bn and the company’s positioning is...

Mio Kato

Freshworks IPO Valuation Analysis

Our base case valuation of Freshworks is market cap of US$13.5 billion or US$45 per share, which is 41% higher than the high end of the IPO price...

Douglas Kim

Freshworks IPO Preview

Freshworks is getting ready to complete its IPO in the US in the coming weeks. Freshworks has an excellent combination of strong sales growth and...

Douglas Kim

Price Gauge

52-week Range

Market Cap (USDm)

P/E

Dividend (Yield)