Venture capital firm Peak XV Partners has sold a 1% stake in Freshworks, a leading software-as-a-service (SaaS) company, for $51.5 million. The details of this transaction were disclosed in a U.S. Securities and Exchange Commission (SEC) filing dated January 29, 2025.
The sale was completed through multiple open market transactions between December 9, 2024, and January 28, 2025. The VC firm sold 2.93 million Freshworks shares, with prices ranging between $17 and $19.10 per share. Following this sale, Peak XV now holds a 3.9% stake in Freshworks.
This divestment comes shortly after Freshworks’ Founder and Executive Chairman, Girish Mathrubootham, sold shares worth approximately $39 million in December 2024. He offloaded more than 2.5 million shares, with weighted average prices between $15.33 and $16.50 per share.
Freshworks, a cloud-based customer engagement software company, has seen steady stock movements in recent months, attracting both insider and institutional sales.
Peak XV Partners’ Investment in Freshworks
Peak XV Partners, formerly known as Sequoia Capital India and Southeast Asia, first invested in Freshworks in 2016. Between 2016 and 2019, the firm reportedly injected $80 million into the company to support its growth in the cloud-based SaaS market.
The recent stake sale appears to be a strategic financial decision as Peak XV adjusts its investment portfolio.
Peak XV Partners has been restructuring its investments amid a slowdown in growth-stage funding. In May 2022, the firm raised $2.85 billion for its eighth investment fund but later decided to reduce the fund size by 16%, returning around $465 million to its limited partners (LPs).
As part of this strategy, Peak XV recently sold a 1.5% stake in fintech company MobiKwik for Rs 82 crore and is preparing for an Rs 810 crore exit from Minimalist, a skincare brand being acquired by Hindustan Unilever.
What’s Next for Freshworks and Peak XV?
Freshworks continues to expand in the SaaS industry, providing customer engagement and support software to businesses worldwide. The company remains a key player in cloud-based enterprise solutions.
Meanwhile, Peak XV Partners is optimizing its investment portfolio, likely focusing on high-growth opportunities while divesting from some of its past investments.
As the tech investment landscape evolves, both Freshworks and Peak XV will remain important names in the startup and SaaS funding ecosystem.
