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Freshworks and Chargebee - both Chennai-headquartered Software as a Service (SaaS) companies - do transact with Silicon Valley Bank, but have very minimal exposure with it.
Insight: Silicon Valley Bank puts the US Fed in the gorge
After the bank’s collapse last week, there were speculations in the social media that both these SaaS companies could have large exposure with the bank.
Read also: SVB fallout: Indian start-ups exploring options to move US deposits fearing contagion effect
“We do not have disruption. We have considered alternatives and we have covered these aspects through active treasury management that has been in place for some time,” Chargebee’s CEO and Co-Founder Krish Subramanian told businessline, when asked if the company was affected due to the bank’s collapse.
“We have been diversified across banks and while we do work with SVB. We do not have much exposure, except for regular transactional activities which we are moving to other banks,” he added.
Chargebee provides an end-to-end revenue management platform for businesses employing a subscription model used globally by over 4,500 customers, including Fujitsu and Freshworks, says information in its website.
More read: Union Minister Rajeev Chandrasekhar to meet Indian start-ups over impact of SVB collapse
Chargebee has raised $468.2 million across eight rounds of funding. This includes $250 million led by Sequoia Capital India and Tiger Global Management in February 2022.
Freshworks
Listed on the Nasdaq, Freshworks in a statement on its exposure with SVB said that it has been a customer of the bank since its early days. As it grew, it brought on larger, diversified banks such as Morgan Stanley, JP Morgan and UBS.
Also read: Nazara Tech says two step-down subsidiaries hold ₹64 cr cash balance at Silicon Valley Bank
The vast majority of cash and marketable securities today is not held at SVB. The company uses SVB and several other banks for normal operations (receiving customer payments, processing payroll and payments to our vendors). The company’s exposure to the current SVB situation is minimal, relative to our overall balance sheet. We are working with our customers and vendors who were using our SVB account to migrate to alternate bank accounts.
“We do not foresee any disruption to our employees or customers,” the statement said.
Globally, over 50,000 companies use Freshworks’ SaaS to enable a better customer experience and employee experience. Some of its customers are Bridgeston, Synergy and Honda, according to its website.
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