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Freshworks’ IPO turned 500 employees into millionares

In today’s blog we will be looking into the master strategy that turned 500 employees of Freshworks’ into millioners

What is freshworks?

  • Freshworks, the company providing SaaS customer engagement, is recently in talks because of its unbelievable success in the stock market. 
  • The company was founded in Chennai by Mr. Girish Mathruboitham and Mr. Shan Krishnasamy. Their headquarter is in Chennai and is based in San Mateo, California. 
  • They joined over a dozen-odd Indian companies like Wipro, HDFC, WNS, Infosys, and Dr. Reddy to trade on the US stock exchanges. 
  • Whereas Infosys was the first company to go on the list in 1999.
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How did it start?

  • Girish was born and brought up in Trichy, Tamil Nadu. He began his educational journey as an engineering student in India.
  •  Later on, he found out that his way of learning things was different from most of the students which helped him to grab a seat at Madras University in MBA in marketing. 
  • After he completed his MBA he joined Zoho Corporation as the Director of Product Management. Sticking to that role for 2 years he found himself taking the responsibility of Vice-President of Product Management in the company. 
  • Working for around half a decade he decided to open up his new company which was initially known as Freshdesk.

How did they make it into reality?

  • Freshdesk was established as the solution for cumbersome and complicated business software.
  • Girish wanted to create a new way of serving the customers by offering them cloud-based services. 
  • Serving the client software which was entirely based on its customers. In 2017 June he officially rebranded the company named Freshworks, which later became the core member of Zoho Mafia. 
  • It was growing so rapidly that they became the first Indian software maker on the list of Nasdaq raising it over $1.03 billion. They got this much just by using their initial public offering (IPO). 
  • Later on, they also managed to create a market capitalization of nearly $10.13 billion. Freshworks share’s price went up by almost 33% to $48 at the initial time at Nasdaq, bringing up to $13 billion market capitalization. 
  • They were getting much criticism from the world, like getting called Indian cowboys by some Twitter user. Ben Kepes also commented that it was an unethical troll. 

Plan of Freshworks: The millionaire maker

  • The euphoria on every social media site made ‘FRSH’ the top trending stock in terms of buys and search numbers in the past weeks.
  •  They also beat the likes of big and famous companies like Tesla, Microsoft, Amazon, and FB. 
  • A hefty number of Indian investors, most likely the first time investors created new accounts to invest in Freshworks.
  • Vested Finance co-founder and CEO Viram Shah stated that investment askings were reaching its heights and over Rs 2 Crore has been invested in the stocks of Freshworks, making it No. 1 stock on the platform in only the first 3 days of listing. 
  • There was a 50% increase in new accounts formed by the users to invest more in Freshworks. Ever since they registered the trend is phenomenal. Showing that the investors are riding the global wave by investing in IPO stocks like that of Freshworks. 

Conclusion

  • We can say that Girish is a man who still remembers his roots. An idea which he needed to bring a thing on the desk which catered to customers, he still reflects on it as he’s still playing an active role in the development of his company. 
  • Thanks to the amazing IPO and Nasdaq listing. The employees who sold their shares have experienced big returns. 
  • Around 76% of employees hold the shares of the company, in the end over 500 of them become millionaires. 

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