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HomeStartupsSaaS Unicorn Freshworks Asks US Courtroom To Dismiss Plea Filed By Zoho

SaaS Unicorn Freshworks Asks US Courtroom To Dismiss Plea Filed By Zoho

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In March, Zoho filed a case towards Freshworks within the California Northern District Courtroom beneath the Defence of Commerce Secrets and techniques Act

Zoho accused Freshworks of accessing and utilizing confidential buyer knowledge, in addition to utilizing Zoho’s private monetary data

Freshworks was based by two former Zoho staff

SaaS unicorn Freshworks has requested a US courtroom to dismiss a plea filed towards it by rival Zoho Company, a Chennai-based SaaS firm. In March, Zoho filed a case towards Freshworks on the California Northern District Courtroom beneath the Protection of Commerce Secrets and techniques Act, accusing it of accessing and utilizing confidential buyer knowledge. Now, Freshworks has mentioned that Zoho’s plea lacked “specificity and particularity” in its allegations. 

In line with the case filed by Zoho Corp earlier this yr, recordsdata of which have been accessed by Inc42, the corporate accused Freshworks of constructing its enterprise by theft and misuse of Zoho’s confidential enterprise data.

Freshworks was based by two former Zoho staff, Girish Mathrubootham, previously a vice chairman of product administration at Zoho and Shan Krishnasamy, who was Zoho technical architect working beneath Mathrubootham. Each of them had labored in Zoho from 2001 to 2010 earlier than founding Freshworks.

Zoho has alleged that Freshworks used its private monetary data to achieve the belief of buyers, which in flip, helped the corporate seal its first spherical of funding. Freshworks raised $1 Mn in its first spherical of funding, a Collection A spherical again in 2011, led by Accel, an early and progress stage enterprise capital agency. The corporate has raised a complete of $484 Mn in 9 funding rounds from six buyers. The corporate’s most up-to-date funding, value $85 Mn, was in January 2020 from a Secondary Market spherical, led by Steadview Capital. 

“After leaving to start Freshworks, Mathrubootham improperly included Zoho confidential revenue figures in early Freshworks investor pitch materials to secure initial investments, leveraging his work at Zoho and suggesting his new startup would perform like Zoho,” the lawsuit learn.

In response to Inc42’s electronic mail in March this yr, Zoho had mentioned, “Recently, compelling evidence has emerged that Freshworks has stolen customer data from Zoho and attempted to contact those customers. We are investigating the extent of the data theft. In order to protect customer data, we were compelled to immediately sue Freshworks to stop their illegal and immoral behaviour. We cannot discuss this further, as it is now a legal matter.”

In its response filed on July 16, Freshworks accused Zoho of increasing one alleged incident of buyer knowledge theft right into a broader case of commerce secret misappropriation.

As of March, Zoho was additionally engaged in a authorized tussle with US-based gross sales and advertising and marketing platform HubSpot over the names of one in all its swimsuit instruments. Each the businesses supply advertising and marketing and gross sales companies beneath the “Marketing Hub” banner. Nevertheless, HubSpot, which launched its Advertising and marketing Hub product in July 2018, has accused Zoho Corp of trademark infringement.



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