Freshworks Inc.

Freshworks Inc.

FRSHFront Office

Freshworks makes cloud-based software for customer engagement, IT service management, and business process automation.

Key figures

Data as of Jun 2026 · Pills compare vs Mar 2026
ARR Multiple
2.8x
+0.3x
ARR
$950M
+3.8%
YoY Growth
16.0%
-0.5pp
Market Cap
$2.7B
+18.7%
Revenue (Q)
$237M
+3.8%
Gross Margin
84.8%
-0.0pp
Op. Margin
2.5%
+3.5pp
Rule of 40
18.5
+2.9
Magic Number
0.31
+0.09

Revenue, margins & ratios from SEC filings; market cap & ARR multiple from market data.

AI Replacement Risk
23/ 100
LowHigh

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Valuation by quarter

Current ARR Multiple: 2.8x

Calculated valuation

FRAMEWORK EST.
Valuation data is not available for this company.

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Company overview

Freshworks makes cloud-based software for customer engagement, IT service management, and business process automation. Girish Mathrubootham and Shan Krishnasamy founded it in 2010 in Chennai, India. It's now headquartered in San Mateo, California. The founding principle was that business software should feel like consumer software: affordable, quick to deploy, and actually pleasant to use.

The product line splits into customer experience and employee experience. On the CX side, Freshdesk handles omnichannel support, Freshsales covers CRM and sales automation, Freshmarketer manages marketing automation, and Freshchat provides AI-powered messaging and chatbots.

On the employee experience side, Freshservice is the anchor. It's an IT service management platform with incident management, problem management, change management, asset management, and IT project management. Freshservice has become a legitimate challenger to ServiceNow in the mid-market, offering similar ITIL-aligned capabilities at a fraction of the cost and complexity.

Freddy AI is embedded across all products. It powers chatbots, intelligent ticket routing, AI-generated responses for agents, predictive analytics for sales, and automated workflow suggestions. Freddy AI Copilot and Freddy AI Agent represent the next generation, offering conversational assistance and autonomous task execution.

Freshworks primarily targets small and mid-market businesses with fewer than 5,000 employees. Pricing starts at $15 per agent per month, significantly below enterprise competitors. The go-to-market mixes product-led growth with inside sales and channel partners. A growing enterprise motion handles larger deals.

Annual revenue is roughly $700 million with gross margins around 84%. Revenue is subscription-based. Net revenue retention exceeds 105%. The company has made good progress toward profitability.

The positioning as the "affordable and easy" alternative to complex tools like Salesforce, ServiceNow, and Zendesk resonates strongly with SMBs that lack big IT budgets and implementation resources. With about 5,500 employees and over 68,000 customers across 120+ countries, Freshworks has become a leading mid-market software platform.

Entity information

Industry7372: Services-Prepackaged Software
Fiscal YearDec 31
IncorporatedDelaware
Phone(650) 513-0514
Address2950 S. DELAWARE ST., SUITE 201, SAN MATEO, CA, 94403
Mailing address2950 S. DELAWARE ST., SUITE 201, SAN MATEO, CA, 94403
EIN33-1218825
Entity typeoperating
SEC industry framework06 Technology
Former namesFreshDesk Inc. (to 2016-11-16)

Quarterly financials

Left axis in $ (Revenue, Gross profit, Net income, S&M); right axis for ratios (Rule of 40, Magic number). Click a legend item to toggle it.

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