Venture capital firm Peak XV Partners has divested approximately a 1% stake in software-as-a-service (SaaS) company Freshworks, as per a US Securities and Exchange Commission (SEC) filing dated January 29, 2025.

The stake sale, executed through multiple open market transactions between December 9 and January 28, involved 2.93 million shares at prices ranging from USD 17 to USD 19.10 per share. The total transaction value stands at USD 51.5 million. Following this sale, Peak XV now holds a 3.9% stake in Freshworks.

This move comes shortly after Freshworks’ Founder and Executive Chairman, Girish Mathrubootham, sold shares worth approximately USD 39 million in December 2024. Mathrubootham offloaded over 2.5 million shares at weighted average prices ranging between USD 15.33 and USD 16.50 per share.

Peak XV Partners, formerly known as Sequoia Capital India and Southeast Asia, first invested in Freshworks in 2016. Between 2016 and 2019, it reportedly injected USD 80 million into the cloud-based customer engagement software firm.

The sale aligns with Peak XV’s broader strategy, as the firm recently reduced the size of its largest fund by 16% in response to a slowdown in growth-stage funding. Having raised USD 2.85 billion for its eighth fund in May 2022, the firm plans to return approximately USD 465 million to its limited partners (LPs).

This is not Peak XV’s only recent divestment. The firm recently sold a 1.5% stake in fintech company MobiKwik for INR 82 crore and is set for an INR 810 crore exit from skincare brand Minimalist’s sale to Hindustan Unilever.