Peak XV Sells Over 1% Stake in Freshworks For $52 Mn

Venture capital firm Peak XV has offloaded over 1% stake in Nasdaq-listed SaaS major Freshworks for $52 Mn (around INR 454 Cr), as per a US Securities and Exchange Commission (SEC) filing. 

The company has sold nearly 2.9 Mn shares though multiple market transactions between December 9, 2024 and January 28, 2025. These shares were priced between the range of $17 and $19.20 apiece. 

Before selling the stake, Peak XV held 5% stake with over 11.70 Mn shares.

The development comes after Freshworks’ founder and executive chairman Girish Mathrubootham sold 2.5 Mn shares of the company worth approximately $40 Mn in December last year. Post the sale, Mathrubootham’s total stake in the company reduced to 232.98 Mn shares.

Prior to that, WestBridge Capital Management sold Freshworks’ 2.75 Lakh shares in the quarter ended September 2024. 

On the financial front, Freshworks trimmed its consolidated net loss by 3.5% year-on-year to $29.95 Mn in the third quarter of 2024 from $31.03 Mn in the year-ago period. However, net loss widened over 48% QoQ from $20.1 Mn in the April-June quarter. 

Total revenue jumped 21.4% to $186.6 Mn in the quarter ended September 30, 2024, compared to $153.6 Mn in the same quarter last year, driven by increasing customer adoption of its AI-powered products. 

Freshworks, founded in 2010 by Girish Mathrubootham and Shanmugam Krishnasamy, offers a suite of software for customer service and support, customer engagement and IT service management. 

Competing with the likes of Zoho, Hubspot, Salesforce and Microsoft, Freshworks made its debut on Nasdaq in 2021. The SaaS major is also backed by the likes of investment giants like Vanguard and BlackRock among others.