Ahead Of IPO, Freshworks Vows Channel Investment Driving ‘Substantial’ Sales

‘We believe that continued growth in our business is dependent upon identifying, developing, and maintaining strategic relationships with additional channel partners that can drive substantial revenue,’ Freshworks says in SEC documents filed Monday.

Freshworks, a customer management software provider that competes with Salesforce, Oracle, Microsoft and others, has made expansion of its partner network a key element of its growth strategy following its upcoming plans to go public, according to a document filed Monday with the U.S. Securities and Exchange Commission.

The San Mateo, Calif.-based company expects to invest more money and resources in growing its channel partnerships, according to the documents. The company has relationships with 400-plus channel partners across 50-plus countries and 350-plus independent software vendors, not to mention integrations with Slack, TeamViewer and others.

“We believe that continued growth in our business is dependent upon identifying, developing, and maintaining strategic relationships with additional channel partners that can drive substantial revenue,” according to the documents.

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Multiple news outlets report that the company is aiming for a valuation of up to $9 billion when it goes public. The company expects to trade on the Nasdaq exchange under the symbol “FRSH.”

It continues: “We are focused on expanding participation in our channel, ISV, and marketplace partner programs across geographies and industries to help us broaden our reach, and drive further customer acquisition and stickiness. Furthermore, we plan to leverage our leading technology partners like Amazon, Google, and Microsoft to explore additional go-to-market opportunities.”

Company representatives did not respond to requests for comment on the filings.

For the year ended Dec. 31, the company saw $250 million in revenue, according to the filings. During the first half of 2021, Freshworks saw $169 million in revenue.

The company reported a net loss of $9.8 million for the first half of 2021, down from its net loss of $57 million for the first half of 2020, according to the filings.

As of June 30, about 52,500 businesses used Freshworks software. Freshworks has more than 4,000 employees, 88 percent of them in India.

Freshworks is an AWS Partner Network ISV. Last year, it ranked No. 5 for execution and among the middle of the pack for vision on Gartner’s Magic Quadrant for IT Service Management Tools.

The company said it had 4,141 employees as of the end of this past June.