Form 4: Accel India III and Accel Growth FII Distribute Freshworks Shares to Partners

Accel India III (Mauritius) Ltd. and Accel Growth FII (Mauritius) Ltd. distributed a total of 2,500,000 shares of Freshworks Inc. Class A common stock to their partners on September 19, 2024.

Summary

• Accel India III (Mauritius) Ltd. (AIN3M) and Accel Growth FII (Mauritius) Ltd. (AGF2M) distributed shares of Freshworks Inc. Class A common stock to their partners on September 19, 2024.
• AIN3M distributed 1,250,000 shares, and AGF2M distributed another 1,250,000 shares.
• The distributions were made for no consideration and represented each partner's pro rata interest in the shares.
• Following the transactions, AIN3M and AGF2M hold 7,050,000 and 12,250,000 shares of Class B Common Stock respectively.
• The distributions were made in accordance with exemptions afforded by Rules 16a-13 and 16a-9 of the Securities Exchange Act of 1934.

Sentiment

Score: 5

Explanation: The document describes a standard distribution of shares to partners, which is neither particularly positive nor negative. It's a routine transaction in the venture capital world.

Industry Context

Venture capital firms often distribute shares to their limited partners as part of the fund's lifecycle, allowing partners to realize returns on their investments. This is a common practice and doesn't necessarily reflect a change in the firm's outlook on the underlying company.

Comparison to Industry Standards

• The distribution of shares to limited partners is a standard practice in the venture capital industry.
• Firms like Sequoia Capital, Andreessen Horowitz, and Tiger Global Management also periodically distribute shares of their portfolio companies to their investors.
• The timing and size of these distributions depend on the fund's investment strategy, the performance of the portfolio companies, and the fund's overall lifecycle.

Stakeholder Impact

• The distribution of shares to partners may slightly increase the float of Freshworks Inc. shares available in the market.
• The partners receiving the shares may choose to hold or sell them, potentially impacting the stock's trading volume and price.

Key Dates