Freshworks, a software-as-a-service (SaaS) company, on Monday said though it has been a customer of Silicon Valley Bank (SVB) since its early days, the majority of its cash and marketable securities are not held at the bank.
The company said that its capital is diversified across banks such as Morgan Stanley, JP Morgan, and UBS and it has a ‘minimal’ exposure to SVB. The firm, however,did not share any specific numbers.
“We use SVB and several other banks for normal operations (receiving customer payments, processing payroll and payments to our vendors). Our exposure to the current SVB situation is minimal relative to our overall balance sheet,” the SaaS firm said in a statement.
The company also stated that it is working with its customers and vendors who were using its SVB account to migrate to alternate bank accounts. Freshworks reassured its stakeholders that it does not anticipate any disruption to its employees or customers.
Freshworks is a leading provider of customer engagement software, with a global customer base that includes organisations such as Honda, Bridgestone, and Hugo Boss. The company recently went public via a direct listing on the Nasdaq, with a valuation of around $13 billion.
Freshwork’s announcement comes after SVB’s collapse. FDIC seized assets of SVB on March 10, after it halted trading on the same day. Shares of the bank plunged over 50% in the US stock markets after it decided to sell a large portion of its securities portfolio which was expected to infuse fresh capital