Freshworks Founder Girish Mathrubootham Sells $40M in Shares Amid Strategic Shifts For the July-September quarter, the company reported a 22 per cent year-over-year increase in revenue, reaching $186.6 million. For the full fiscal year, Freshworks projects a 20 per cent growth, with total revenue estimated to range between $713 million and $716.6 million.
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Freshworks founder and board chairman Girish Mathrubootham has sold $40 million worth of shares in the Nasdaq-listed software-as-a-service (SaaS) company, as per filings with the U.S. Securities and Exchange Commission (SEC). Mathrubootham divested 2.5 million shares over two days, December 18 and 19, reducing his ownership in the company, where he previously held a 5 per cent stake.
This marks the latest in a series of share sales by Mathrubootham, who had earlier sold $41 million worth of stock in September 2023 and divested $9.6 million worth of shares in February. The moves follow a decision by Freshworks' board in February to cancel a performance-based stock award of six million shares, citing macroeconomic pressures affecting the company's stock performance.
Founded in 2010, Freshworks specializes in customer relationship management (CRM) software targeted at small and medium businesses (SMBs). With over 68,000 customers globally, including major brands like American Express, Bridgestone, and Sony, the company has been navigating a challenging market environment while executing strategic initiatives to streamline operations.
In November, Freshworks announced a 13 per cent workforce reduction, impacting approximately 660 employees globally. This restructuring was part of a broader effort to optimize efficiency and included plans for a $400 million share buyback program. Following these announcements, Freshworks shares experienced a rally. However, as of Friday, December 20, the company's stock has fallen 8 per cent over the past five days, trading at $15.40 per share, with a market capitalization of $4.7 billion.
For the July-September quarter, the company reported a 22 per cent year-over-year increase in revenue, reaching $186.6 million. For the full fiscal year, Freshworks projects a 20 per cent growth, with total revenue estimated to range between $713 million and $716.6 million.
Outside Freshworks, Mathrubootham has been an active venture investor. In 2021, he co-founded Together, an $85 million venture fund supporting early-stage software startups led by Indian founders. The fund raised a second corpus of $150 million in 2022.
