In a post on X, Mathrubootham said, “After spending almost 14 years since founding Freshworks as a tiny startup in Chennai, to scaling it to be a global Saas player and the first Indian Saas company to list on Nasdaq, I’m excited to announce that I’m stepping into a new role as Executive Chairman of Freshworks.”
Shares of the San Mateo, California-based company fell about 21% in extended trading.
Woodside joined Freshworks as president in 2022, with a prior professional record including roles as president at Impossible Foods, Dropbox COO and Motorola Mobility’s CEO.
Mathrubootham founded the company in 2010 in India’s Southern city of Chennai and guided the company to go public in the Nasdaq stock exchange in 2021.
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In a note to employees on Thursday, he said the decision to step down as CEO was not taken lightly. “A couple of years ago, I started talking with our board about my longer-term plans for Freshworks. I shared that when the time is right, I would like to shift my focus to our long-term product vision and invest in our presence in India. These are areas where I get the most energy and where I’m also playing to my strengths,” his note read.
Mathrubootham said the decision was an emotional one for him. “Freshworks is my baby, and over the years I have seen her grow—as a toddler trying to walk, a child growing really fast, and a teenager growing stronger. The emotions running through my mind are similar to a father experiencing his beloved daughter’s marriage, happy and sad at the same time, knowing fully well that she has found the right one and is going to accomplish greater things in life,” he told employees.
Separately, it also forecast second quarter revenue between $168 and $170 million, below market estimates of $172.1 million, according to LSEG data.
