Startup Atlas · Artificial Intelligence / Agentic AI

Freshworks Listed (NASDAQ: FRSH)Unicorn (since 2018) Investor

Freshworks Inc. San Mateo, California Founded 2010 freshworks.com ↗
Girish Mathrubootham · Co-founder; former CEO (2010-2024) and Executive Chairman (2024-Dec 2025, stepped down Dec 1, 2025) Shan Krishnasamy · Co-founder and former CTO (departed / took career break, 2022)
$392 MnTotal funding (tracked)
7Funding rounds
13 Nov 2019Last round
3Tracked investments
4,500Team size (sourced)

Freshworks: Business Model Canvas

The nine-block Business Model Canvas, filled in only where a public source states it — empty blocks mean we haven't found a citable fact yet, not that the answer is zero.

Value Propositions

Uncomplicated, enterprise-grade service software

Freshworks' stated mission is to help "every business struggling under the weight of bloated, overpromised software" with solutions designed for easy implementation and rapid impact.

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Unified AI-first CX and EX platform

A single platform spanning customer experience (Freshdesk, Freshdesk Omni, Freshchat, Freshsales, Freshmarketer) and employee experience / IT service management (Freshservice), positioned as an alternative to fragmented, complex enterprise software.

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Agentic AI (Freddy AI) that resolves, not just assists

Freddy AI Agent, Copilot and Insights are marketed as delivering up to 70% ticket deflection from AI agents and up to 50% productivity gains from Freddy AI Copilot, used by 5,000+ organizations since 2023.

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Customer Segments

Small and Mid-Sized Businesses (SMB)

Defined by Freshworks as organizations with 250 or fewer employees; historically the company's largest base (51,000+ of 65,600 total customers as of Q3 2023) served via low-cost, low-touch, self-service and product-led growth.

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Mid-Market companies

Organizations with 251 to 5,000 employees, served through a mix of inbound, outbound and partner-led demand generation.

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Enterprise companies

Organizations with 5,001+ employees; Freshworks targets specific departments/divisions within large enterprises (215 Global 2000 firms cited, incl. American Express and Bridgestone) using a high-touch, outbound sales approach.

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High-value / expansion accounts

24,762 customers contributing $5,000+ ARR as of Q4 2025, up 10% year-over-year.

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Customer Relationships

Self-service support for SMBs

SMB customers are primarily served through low-touch, self-service and inbound/partner demand generation rather than dedicated account management.

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High-touch account coverage for Enterprise

Enterprise accounts receive a high-touch, outbound sales and account approach targeting specific departments/divisions within large organizations.

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Channels

Self-serve free trial / product-led growth

14-day free trial of the Enterprise plan (no credit card required), plus a separate always-free plan for up to 2 agents — feeding a low-touch, self-service acquisition motion for SMB customers.

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Inside and field sales

Direct inbound and outbound sales teams serving mid-market and enterprise accounts.

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Global partner/reseller network

500+ transacting channel partners worldwide across Referral, Solution Provider and Strategic partner tiers, with deal registration, MDF and a Partner Academy.

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AWS Marketplace / cloud marketplaces

Freshworks offers its SaaS products for purchase through AWS Marketplace under a multi-year strategic collaboration agreement with AWS.

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Key Activities

Product R&D across a multi-product platform

Ongoing development across Freshdesk, Freshservice, Freshsales, Freshchat/Freshdesk Omni, Freshmarketer, and the Freddy AI platform.

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Inorganic capability expansion via M&A

Acquired AI/automation and ITOM capabilities (Natero, AnsweriQ, Flint, Device42, FireHydrant) to extend the platform's customer-success, AI, and IT-operations depth.

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Multi-motion go-to-market: direct sales, self-serve & channel partners$394.8M FY2025 S&M spend (47% of revenue); 500+ transacting channel partners globally

Blends inbound/self-serve PLG signups with direct enterprise sales and a global channel of 500+ transacting partners who own consulting, deployment, and lifecycle optimization of Freshworks' CX/ITSM/CRM products -- paired with the multi-channel distribution covered in the Channels block.

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Operating & training the Freddy AI service-delivery engine5,000+ organizations on Freddy AI; up to 70% ticket deflection, 50% productivity gains

Continuously operating and improving the Freddy Agentic AI Platform (Agent, Copilot, Insights, Agent Studio) that automates support workflows for customers at scale, driving measurable ticket deflection and agent productivity gains.

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Key Resources

India-based engineering and operations workforce

A majority of Freshworks' approximately 4,500 full-time employees (as of Dec 31, 2025) are based in India, supporting engineering, product design, customer support, in-bound sales, and G&A functions.

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Freddy AI / agentic AI platform IP

Proprietary Freddy Agentic AI Platform including Freddy AI Agent, Copilot, Insights, and the no-code Freddy AI Agent Studio for building autonomous service agents.

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Large, diversified global installed customer base24,762 customers >$5K ARR (+10% YoY); 1,500+ customers >$100K ARR (+28% YoY); >60% of ARR from 250+ employee accounts (FY2025)

A large base of paying organizations across segments and geographies gives Freshworks a durable revenue resource and cross-/up-sell surface as accounts mature from SMB into enterprise.

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AWS-hosted multi-region cloud infrastructureHosted on AWS across 5 global regions; 85% gross margin (FY2025)

Freshworks' SaaS products are hosted on Amazon Web Services across regions in the United States, EU, India, Australia, and the UAE -- the infrastructure resource underpinning uptime, data residency, and its high-margin delivery model.

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Key Partnerships

Amazon Web Services (AWS)

Multi-year strategic collaboration agreement; Freshworks products are transactable via AWS Marketplace and integrate with Amazon Connect, AWS Lambda, EventBridge and DocumentDB; Freshworks holds multiple AWS Competency designations.

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Microsoft

Integration of Azure OpenAI into Freddy AI and native ticket management within Microsoft Teams.

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Technology/ISV partner ecosystem

1,400+ public marketplace integrations, 150,000+ active integration installs, and 43,000+ active customers using integrations across a three-tier (Registered/Authorized/Premier) partner program.

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Revenue Streams

Per-agent/per-user SaaS subscriptions$19-$89 per agent/month

Freshdesk plans run $19-$89/agent/month (Growth/Pro/Enterprise, billed annually).

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Total company subscription revenue$838.8M FY2025 revenue

Full-year 2025 revenue of $838.8 million, up 16% year-over-year.

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Freddy AI revenue$25M+ Freddy AI ARR

Freddy AI, Freshworks' AI product line, exceeded $25 million in ARR in FY2025.

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Cost Structure

Operating leverage / improving margins21.2% non-GAAP operating margin (FY2025)

Non-GAAP operating margin improved to 21.2% for full-year 2025 (vs. 13.8% in 2024); adjusted free cash flow margin reached 26.6% (vs. 21.3% in 2024), reflecting cost discipline as the company scaled.

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Product R&D spend across the multi-product platform$163.2M R&D spend, 19.5% of FY2025 revenue (vs 22.8% of revenue in FY2024)

GAAP research & development expense of $163.2M in FY2025, funding ongoing development of Freshdesk, Freshservice, Freshsales, Freshchat/Omni, Freshmarketer and the Freddy AI agentic platform.

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Sales & marketing spend to fund GTM engine$394.8M S&M spend, 47.1% of FY2025 revenue (vs $390.8M/54.2% of revenue in FY2024)

GAAP sales & marketing expense of $394.8M in FY2025, covering direct sales, demand generation, and the 500+ partner channel that drives Freshworks' multi-motion go-to-market.

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General & administrative overhead$141.1M G&A spend, 16.8% of FY2025 revenue, down from $180.6M (25.1%) in FY2024

GAAP G&A expense fell to $141.1M in FY2025 from $180.6M in FY2024 as the company right-sized corporate overhead while scaling revenue, a key driver of full-year operating-margin improvement.

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Cost of revenue -- AWS cloud hosting & infrastructure$126.1M cost of revenue; 85% gross margin (FY2025), incl. $3.4M rise in AWS hosting costs

Cost of revenue of $126.1M in FY2025 (up 11% YoY), driven mainly by $3.4M higher third-party AWS hosting costs to support a growing customer base plus software license fees, employee costs, and amortization of developed technology; yielded 85% gross margin.

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FAQs on Freshworks

What is Freshworks's business model?

Freshworks's core value proposition centers on Uncomplicated, enterprise-grade service software, Unified AI-first CX and EX platform, Agentic AI (Freddy AI) that resolves, not just assists.

How does Freshworks make money?

Freshworks's cited revenue streams include Per-agent/per-user SaaS subscriptions, Total company subscription revenue, Freddy AI revenue.

Sources & corrections. Every fact on this page is compiled from cited public sources — follow the "source" links beside each entry. Profile sources: www.prnewswire.com www.bseindia.com · Last verified 7 Sep 2026. · Report a correction