Form 4: Accel Partner Sameer Gandhi Reports Distribution of Freshworks Shares

Sameer Gandhi, a director and significant shareholder of Freshworks Inc., reported the distribution of Class A common stock by Accel-affiliated entities to their respective partners.

Summary

• On September 20, 2024, Sameer Gandhi, a director and 10% owner of Freshworks Inc., filed a Form 4 detailing changes in beneficial ownership.
• The filing primarily concerns the distribution of Class A common stock by several Accel-affiliated entities (Accel India III (Mauritius) Ltd. and Accel Growth FII (Mauritius) Ltd.) to their partners.
• These distributions were made without consideration, representing each partner's pro rata interest in the shares.
• The distributions are reported to be in accordance with exemptions afforded by Rules 16a-13 and 16a-9 of the Securities Exchange Act of 1934.
• Gandhi also reported indirect ownership through various trusts and partnerships, disclaiming beneficial ownership except to the extent of his pecuniary interest.
• The filing also reflects adjustments in the number of shares held by various Accel Leaders funds and Accel India funds.
• No derivative securities were acquired or disposed of, but the filing details the indirect ownership of Class B Common Stock, which can be converted into Class A Common Stock.

Sentiment

Score: 5

Explanation: The document is a standard regulatory filing detailing share distributions, with no inherent positive or negative sentiment.

Industry Context

Form 4 filings are standard practice for reporting changes in beneficial ownership by company insiders, providing transparency to investors.

Stakeholder Impact

• The distribution of shares may have a minor impact on the shareholder base, but the pro rata nature of the distributions suggests minimal disruption.
• The filing provides transparency to shareholders regarding the ownership structure of the company.

Key Dates