Alphabet‘s CapitalG investment arm is generating hefty returns from a big bet on cloud software developer Freshworks.

After Freshworks shares jumped 32% in their Nasdaq debut on Wednesday, CapitalG’s stake is worth $987 million. This group invests later-stage capital from Alphabet and has invested approximately $87million in multiple rounds. Its valuation was $150 million.

Freshworks, whose software competes with Salesforce and Zendesk, marks CapitalG’s sixth IPO this year, following the debuts of UiPath, Duolingo, Robinhood and Oscar.

Gene Frantz from CapitalG, who was the CapitalG partner that led Freshworks’ investment said, “It is hard not to feel fantastic.”

Also on Wednesday, Google’s early-stage investment Group, GV, scored a win from Toast’s IPO. Although the restaurant-tech firm is worth $31 billion (GV did not have enough of a stake to be included in the prospectus), it has a value of $31 billion. GV made an investment at a value of less than $100 million.

Frantz recalled the time he first approached Freshworks CEO  Girish Mathrubootham, who started the company in India in 2010.

Frantz explained that they reached out to Girish Mathrubootham, the Freshworks CEO. They invited him to CapitalG’s campus to demonstrate not that he is working for them but the reverse. I didn’t want him leaving the room, and tried to persuade him that we would be a great partner moving forward.

Frantz stated that the company helped FreshWorks with a variety of issues where Google’s experience and expertise might be useful. FreshWorks has been helped by the firm in areas such as machine learning, artificial intelligence, and workplace problems like returning home from work or remote working.

Freshworks products are designed in such a manner that users don’t need to be trained for hours, as is the case with other enterprise software.

Frantz stated that they tried to focus “maniacally” on providing a great user experience, and the rest would fall in place.

Frantz stated that Freshworks was also assisted by the firm in rebranding from FreshDesk’s previous name.

At a value of over $10 billion, Freshworks is one of a number of cloud-based software companies that have recently hit the public market. Many more are on the horizon. Frantz stated that Freshworks will be an excellent public market company, no matter what the economic environment. 

Frantz stated that CapitalG would continue to be active in the areas it has had success, such as enterprise, cybersecurity, and fin-tech. He also said CapitalG is focusing on businesses that are able to weather any economic storm.

He said that “activity around startups continues be strong.” He said that high valuations are a sign of the current economic climate. “Certainly the times will show these conditions for some time.”

Frantz acknowledged that Covid-19 has presented challenges. However, technology is helping to overcome them.

“The economy is a better world than before Covid-19 — not to take away from the suffering — but from the business perspective,” he said.

WATCH: Freshworks goes public in $10 billion IPO