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Mathrubootham, who stepped down as the chief executive officer (CEO) of Freshworks, sold a total of 2.5 million shares in two tranches on December 18 and 19, the filings showed. Prior to this, he owned around 5% stake in the company.
Mathrubootham is currently the chairman of the board of directors at Freshworks and was replaced by Dennis Woodside for the CEO position.
In February this year, he had divested shares amounting to $9.6 million.
During the same month, the Nasdaq-listed company’s board cancelled the performance-based stock award of six million shares to Mathrubootham, citing macroeconomic headwinds that created challenges for Freshworks’ share price.
In September 2023, Mathrubootham had sold more than $41 million worth of stock in the Chennai and San Mateo, California-based enterprise software company.
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Mathrubootham did not respond to messages seeking comments at the time of publishing.In 2021, Mathrubootham, along with Eka Software founder Manav Garg, launched an $85-million venture fund Together with a key focus on backing early-stage software startups being built in India or by Indian founders. In July last year, Together announced its second fund with a $150 million corpus.
Last month, ET reported that WestBridge Capital trimmed its stake in the company by 2% during the July-September period.
In the same month, Freshworks laid off 13% of its workforce, impacting around 660 employees globally, as part of its efforts to streamline operations.
The company had also announced that it plans to conduct a $400 million share buyback programme.
In the July-September quarter, Freshworks saw its total revenue increase by 22% to $186.6 million, compared to $153.6 million in the same quarter of 2023.
The company had said that it expects to clock between $187.8 million and $190.8 million in revenue for the fourth quarter.
For the full year, it estimates a 20% growth, with total revenue projected to reach between $713 million and $716.6 million.
Following Freshworks’ announcement of the layoffs and share buyback programme on November 6, its shares surged.
Currently, the company has a market capitalisation of around $4.7 billion. Over the past five days, its stock price has fallen 8% and was trading at $15.40 apiece on Friday at 7.21 pm IST.
Freshworks, founded in 2010, primarily targets small and medium businesses (SMBs) with its customer relationship management (CRM) software. The SaaS firm serves more than 68,000 customers, including American Express, Bridgestone, Databricks, Fila, Nucor and Sony.
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