After Freshworks, Icertis is looking for an IPO for next year in the US

Sep 1, 2021, 16:32 IST

Icertis cofounder and CTO Monish DardaIcertis/BI India

Icertis is exploring options for Nasdaq listing in the US for sometime next year.
The company aims to double its valuation to $6 billion, as per sources aware of the development.
The company counts Google, Microsoft, Johnson & Johnson, Infosys, Wipro and Cognizant as its customers.

Software-as-a-service (SaaS) firm Icertis is holding serious discussions to hit the public markets by the end of 2022.

Pune and Seattle-headquartered company — valued at $2.8 billion — is considering to go for an initial public offering (IPO) in the United States sometime next year, Icertis’ cofounder and chief technology officer (CTO) Monish Darda told Business Insider.

The company counts Google, Microsoft, Daimler, Airbus, Johnson & Johnson, Lupin, Infosys, Wipro and Cognizant as its customers.

A Nasdaq listing is the top priority of the company, which offers contract management solutions to businesses, at the moment.

Though Darda did not share details like the amount the company plans to raise or the valuation it is looking to list at, people aware of the development told Business Insider that Icertis plans to double its valuation to $6 billion by next year with this public issue.

Darda clarified that Icertis is ready to hit the public market in terms of its business growth, however the plan still hinges on two major developments. First, the growth of the business by next year. Second, the economic situation globally. Regardless, the company is open to raising capital through both private as well as public markets depending on the economy and the COVID-19 situation.

“If we need a round, with our valuation and our revenue, we always have an option of going public, so we'll evaluate that as well. So there are a couple of things we could do next year in terms of, you know, how we move, we can raise another round and you know, defer going public. Or we could choose the path of going public as well.”

— Monish Darda, co-founder and CTO of Icertis, told Business Insider.

Last week, another Indian SaaS company Freshworks filed for an IPO in the USA, seeking permission to list on Nasdaq. It is looking to raise $100 million.

Founded in 2009 by Darda and Samir Bodas, Icertis’ flagship product ‘Icertis Contract Intelligence (ICI)’ manages over 10 million contracts with an aggregate value of more than $1 trillion.

Icertis added 70-100 customers in 2020 and 100 customers in the first half of 2021. It plans to add over 100 customers by the end of 2021.

“I think what is interesting is that the last four quarters have been successively the best quarters we've ever seen in Icertis. We have beaten every quarter, every year. So the last two quarters, January-February-March and April-May-June. April-May-June has been the best quarter in the history of Icertis,” Darda added.

Icertis claims to have a revenue between $100 million to $200 million, growing at 60-70% rate annually.

The 12-year-old company raised $80 million in March this year to add more customers as well as develop more products for its existing customers. Overall, the company has raised $291 million to date from marquee investors like B Capital, PremjiInvest, Greycroft, Meritech Capital Partners, and PSP Growth.

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