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Freshworks CEO, Employees to Sell Shares Worth $584 Mn

Freshworks CEO, Employees to Sell Shares Worth $584 Mn

The shares belonging to Class A common stock will be sold at $43.13

The share sale would reduce CEO Mathrubootham’s stake to 5.1% from 6%.

Its market capitalisation is currently at $11.46 Bn

The top management and employees of Nasdaq-listed Freshworks have initiated a sale of 13,555,142 equity shares in one of India’s largest ESOP schemes.

The shares belonging to Class A common stock will be sold at $43.13, the company said in a filing with the Securities and Exchange Commission (SEC).

The CEO Girish Mathrubootham has offered to sell 2,422,650 shares. The share sale would reduce Mathrubootham’s stake in the company to 5.1% from the current 6%.

Jose Morales, the Chief Revenue Officer, who holds 375,940 shares, will sell 300,752 shares. The Chief Financial Officer, Tyler Sloat will sell 450,000 shares in the offer.

Among others, Srinivasagopalan Ramamurthy, the Chief Product Officer will offload 300,770 shares.

The SaaS major will not receive any of the proceeds from the sale of the shares and all proceeds from the sale will be for the account of the selling stockholders.

The development comes with the end of the mandatory lock-in period after the IPO, as  shareholders are now allowed to sell up to 20% of their stake in the company.

In September, the homegrown customer engagement company witnessed a stellar stock market debut in the US, and its early investors made a fortune. The Salesforce rival had said that over 500 shareholding employees in India have become crorepatis following the listing. Globally, Freshworks has around 4,300 employees. 

Its market capitalisation is currently at $11.46 Bn. On Monday, its shares closed at $40.72 per share.

For the quarter ended September, the company reported a consolidated net loss of $107.4 Mn. 

During the same period last year, the Chennai-based SaaS giant had reported net profit of $13.87 Mn. Freshworks registered a 46% rise in its revenue to $96.6 Mn, from $66.2 Mn during the third quarter (July-September) of 2020.