Business

Zendesk seeks more than $100M in IPO

Zendesk sees itself as a $700 million company.

The San Francisco, Calif.-based startup, which makes cloud-based help-desk software, today set the price range for its initial public offering at $8 to $10, according to an SEC filing. It plans to sell 11.1 million shares somewhere within that price range, which would garner the company between $88.8 million and $111 million. At the high end, the company would command a market value up to $700 million.

Zendesk’s help-desk software lets its clients manage customer service issues through a variety of channels: phone, email, online chat, and social media. With Zendesk, customer-service managers get analytics and reporting capabilities to get a picture of how many requests come in and how well help desk workers are doing their jobs.

The startup also offers a community discussion portal, which it claims “builds customer relationships outside support tickets.”

Software pricing ranges from $1 to $195 per month for each representative using Zendesk. The company says it has around 42,000 customer accounts.

The help-desk software space is filled with viable competitors, including Salesforce’s Desk.com, Freshdesk, and Kana. (Check out our top 10 list of powerful, cloud-based help-desk services here.)

Zendesk reported a loss of $22.6 million for 2013, compared to a $24.4 million loss a year earlier. But it increased revenues 88% to $72 million last year, according to the filing.

Zendesk’s institutional investors include Charles River Ventures, Benchmark Capital Partners, and Matrix Partners. Its latest funding round — $60 million — came in September 2012.

Zendesk plans to list on the New York Stock Exchange under the symbol “ZEN.”

More information:

Zendesk provides a customer service platform designed to bring organizations and their customers closer together. With more than 40,000 customer accounts, Zendesk is used by organizations in 140 countries to provide support in more tha... read more »

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