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Sequoia Capital India, a venture capital firm, has purchased 5.48 million shares of Freshworks’ common stock worth $94.8 million. This helped the stock price of the Chenna/US-based software company on the Nasdaq gain by 9.34 per cent on Wednesday.
Sequoia, a 10 per cent shareholder in Freshworks, bought the shares in the price range of $16.46–18, according to the company’s SEC Filings.
On September 22, 2021 Freshworks’ Class A Common Stock got listed on Nasdaq with the opening price of $43.5 — well higher than the set price of the IPO at $36 per share — and with a market cap of over $13 billion.
The 52-week high of the stock price was $53.36 and low was $15.60. The stock price on Wednesday closed at $18.52, up $1.59 with a market cap of $5.2 billion, , according to information on the Nasdaq website.
The enterprise software company's stock lost ground following its fourth-quarter earnings release. Freshworks even delivered better-than-expected guidance with its fourth-quarter report, but it still wasn't enough to prevent a double-digit sell-off as investors moved out of growth-dependent software companies last month, said a report last week by Motley Fool, a multimedia financial-services company when Freshworks’ stock was down by 15.8 per cent.
Freshworks reported a net loss of $74 million in the fourth quarter ended December 31, 2021 as against $1.5 million in the same quarter previous year. The company did not comment on the reasons for the steep increase in net loss.
GAAP (loss) from operations was $56.4 million, compared to $3.4 million in the fourth quarter of 2020, says a company press release. For the full year, Freshworks reported a net loss of $191 million ($57 million). Revenue grew by 49 per cent to $371 million ($250 million).
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