Freshworks gets new CEO; Stride Ventures closes third fund

Freshworks had a lot to share.

The SaaS firm said it is acquiring US-based startup Device42 for $230 million. It also revealed that founder Girish Mathrubootham has stepped down as CEO and will be replaced by Dennis Woodside. 

In other news, BYJU'S is facing more trouble as OPPO, McGraw Hill Education, and Cogent E-services recently joined the roster of companies lodging insolvency claims against the edtech firm at the National Company Law Tribunal (NCLT) in Bengaluru.

Elsewhere, the Reserve Bank of India has lifted restrictions on Bajaj Finance Ltd.'s eCOM and online digital Insta EMI Card products with immediate effect, according to an exchange filing from the company. The lender can now resume sanction and disbursal of loans under eCOM and Insta EMI Card and also issue new cards.

Meanwhile, Dhruv Dhanraj Bahl, the former chief operating officer (COO) of BharatPe, has launched Eternal Capital, his maiden venture capital fund, with a target to raise Rs 120 crore.

ICYMI: Expected to sell for up to $600,000 next month, the original cover art for Harry Potter and the Philosopher’s Stone will likely set an auction record for an item related to the book series.

Lastly, today is World Press Freedom Day. 

In today’s newsletter, we will talk about 

• Dennis Woodside is now Freshworks CEO
• Stride Ventures closes third fund
• Reshaping MSMEs' digital journey

Here’s your trivia for today: Which variety of gemstones is formed from natural volcanic glass?

SaaS

Dennis Woodside is now Freshworks CEO

California-based SaaS company Freshworks has said that Girish Mathrubootham will transition to the role of Executive Chairman. Meanwhile, Dennis Woodside, who is currently the President, has been appointed as the new CEO.

“Today, I am announcing a new chapter in our company's story and my career. I have decided to step down as CEO of Freshworks and transition into the role of Executive Chairman. This decision was not made lightly and comes with a deep belief in our collective vision and the future of our company,” said Mathrubootham in a statement. 

Passing the reigns:

• Dennis Woodside, the newly elevated CEO of Freshworks, has a killer resume. He has led divisions at tech giants like Google and Dropbox and steered Impossible Foods, a plant-based meat company.
• The SaaS company also pared losses by 45%, achieving a reduced net loss of $23.3 million for the first quarter ending March 31, 2024, compared to $42.7 million in the first quarter of 2023.
• Last year, Freshworks experienced a significant 20% growth in revenue for the quarter ending December 2023 through the integration of Gen AI within its product portfolio.

<Funding Alert>

Startup: Maiva Pharma

Amount: Rs 1,000 Cr

Round: Undisclosed

Startup: Go Desi

Amount: Rs 41 Cr

Round: Equity

Startup: Infinity Fincorp Solutions

Amount: $8M

Round: Undisclosed

Investor

Stride Ventures closes third fund

Venture debt firm Stride Ventures has announced the final close of its third fund, Stride Ventures India Fund III, at $165 million. Launched a year ago, the fund has garnered support from a diverse mix of investors, including insurance companies, family offices, corporate treasuries, and high-net-worth individuals (HNI).

Key takeaways:

• Before this third fund, Stride Ventures raised two funds, with the first one in 2019 at $50 million and the second in 2021 at $200 million.
• It has provided funding to over 140 startups across consumer, fintech, agritech, B2B commerce, healthtech, B2B SaaS, mobility, and energy solutions (EV) sectors.
• In an earlier report in February 2024, Stride Ventures noted that venture debt investments into Indian startups saw a 50% increase in 2023 to touch $1.2 billion.

SMB

Reshaping MSMEs' digital journey

According to a FICCI survey, MSMEs have embraced digital technology across various business areas, with 60% employing it for human resources, 51% for sales and marketing, and 48% for finance. Around 37% of surveyed enterprises use cloud-based business applications like IaaS, PaaS, and SaaS. 

Supporting this growth is Hyderabad-based SMBXL, which provides technology solutions to MSMEs, allowing them to augment their business and expand to newer markets and geographies.

Digital play:

• SMBXL helps businesses by connecting them with customers, suppliers, and business partners. It also provides value-added services that are essential to run a successful business. It charges a fee of Rs 799 per month for its tech tools. 
• The company’s focus on organising virtual expos to connect enterprises sets it apart from its peers in the market.
• Between February and March 2024, it organised one of the first B2B Online Machine Tools Expo 2024, which helped enterprises reach new dealers, suppliers, business partners and potential customers. 

News & updates

• Oil: Reliance Industries is foraying into trading a type of US crude oil, WTI, that underpins the global Brent benchmark in a process run by oil-index publisher S&P Global Commodity Insights. India is looking to diversify its oil supplies as fresh US sanctions on Moscow threaten to dent Russian oil sales to India.
• Many issues: Spain’s Deoleo, the world’s largest olive oil producer, says the industry needs to undergo a “profound transformation” as a perfect storm of climate change, soaring prices, high interest rates, and robust inflation has taken its toll throughout the olive oil value chain.
• Deal: Universal Music Group, the record label for top music artists, including Taylor Swift, struck a new licensing agreement with TikTok, ending a spat between the two companies. Earlier this year, it pulled songs from artists signed to UMG after the two sides failed to agree on a new deal over content licensing.

Which variety of gemstones is formed from natural volcanic glass?

Answer: Obsidian. It is the most common form of natural glass and, like many other gemstones, has been used to make jewellery and carvings since the Stone Age.

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