Sprinklr, a US-based marketing software developer backed by semiconductor technology producer Intel, raised $266m in its initial public offering yesterday.
The offering took place on the New York Stock Exchange and was comprised of just over 16.6 million class A shares priced at $16 each, equating to a market capitalisation of approximately $4bn. The company had expected to issue 19 million shares priced between $18 to $20.
Existing investors including Hellman & Friedman, Battery Ventures, Iconiq Capital and Sprinklr founder, chairman and CEO Ragy Thomas agreed to purchase about 3.1 million of the shares in the offering. They are trading at $19.84 at time of publication.
Sprinklr has built a unified software platform that helps businesses manage their customer interactions across a variety of digital channels. Its offering includes software tools for market research, advertising and customer engagement.
The company had generated $387m of revenue in the fiscal year ending January 2021, increased from $324m in the same period a year earlier. It reported a $41.2m net loss for the same period.
Hellman & Friedman invested $200m in Sprinklr in September 2020 at a $2.7bn valuation, alongside $150m of convertible securities provided by investment firm Sixth Street’s Growth unit.
The funding came after the company raised $105m in a 2016 round led by Singaporean state-owned investment firm Temasek that also featured EDBI, Wellington Management and unspecified existing backers.
Intel’s corporate venturing unit, Intel Capital, took part in a $46m series E round for Sprinklr in 2015 that also featured Battery Ventures and Iconiq Capital. The series E participants had contributed to a $40m series D round the year before.
Intel Capital and Battery Ventures were among the investors in Sprinklr’s $17.5m series C round in November 2013 and a $15m series B round nine months earlier. Battery Ventures had previously supplied $5m for the business in 2012.
Hellman & Friedman, Sprinklr’s largest shareholder, has 24.8% of its 234 million class B shares and 8.5% of the 16.6 million class A shares post-IPO. Battery Ventures holds 6.5% of the class A shares and 19.1% of the Class B’s while Iconic Capital has 3.6% of the class A’s and 10.8% of the class B’s.
Morgan Stanley, JP Morgan, Citigroup, Barclays and Wells Fargo Securities are lead underwriters for the offering, while JMP Securities, KeyBanc Capital Markets, Oppenheimer, Stifel, William Blair, Blaylock Van, CL King & Associates, Ramirez & Co and Roberts & Ryan are also underwriters.
The offering includes a 30-day option to purchase just under 1.7 million additional shares, which could increase its size to about $293m.