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Zoho Business Model – How The Startup Is Successful In 2022/2023

Zoho Corporation

Zoho is one similar company which got successful starting from a small apartment located in the Chennai cities. Which has come up as a leader in web- based business tools supplying a single cloud platform with all major applications to run a business entirely from the cloud.

Zoho began its journey with its Zoho Customer relationship management (CRM) platform in 2005 and has expanded to all different departments of business and enterprise. today Zoho has 4000 workers and its headquarters is in California and offices in Singapore, Japan, China and India. Zoho also offers an enterprise- position subscription called Zoho One.

Zoho One has 40 of Zoho’s applications each together to make for a connected “ operating system for business.” It has over 50 million druggies in over 180 countries across the globe.

About the founder and CEO

Sridhar Vembuco-founded ZOHO in 1995 with Tony Thomas. However, the company was not as famous as Zoho back then it was known as AdventNet (1996-2009). He began his early education in a Tamil medium government- backed school in Chennai till 10th and besides that his under- scale from IIT Madras.

Afterward he did Electrical engineering from Princeton University in 1989 as well. And then he joined Qualcomm in San Diego after finishing his Ph. D IN 1994. During this stint of roughly 2 years, being an Electrical Engineer, he used to work on wireless communication including aspects like CDMA, power control and some truly detailed issues on wireless communications.

Zoho co-founder Tony Thomas worked at Bell Labs, before founding AdventNet.

Zoho - Products

Zoho Corporation has been divided into the following three divisions -

1. Zoho.com - This division offers products related to Online business, and productivity and collaboration applications.

2. ManageEngine - Offers Enterprise Management tools.

3. WebNMS is the IoT software division of Zoho Corporation.

4. Zoho CRM - Released in 2005. Zoho CRM ( customer relationship management software) is being used by over 250000 companies across 180 countries. Zoho CRM India helps companies manage their deals, marketing, and client service activities all from a single platform.

5. Zoho Writer -This is a cloud- based word processor. Zoho writer allows one to invoke documents and collaborate with the company members in real- time.

Zoho Sheet, Zoho Show, Zoho Creator, Zoho Meeting, and Zoho Documents are some other popular products by Zoho.

Zoho finally drove in nearly every sector of sales, finance, communication, and marketing. The company brought in a major digital transformation with more than 50 million users in 2019, and introduced ‘Zoho Remotely’, a toolkit to expedite work-from- home.

Zoho

FY21

FY20

FY19

Revenue

Rs 5,442.4 Cr

Rs 4,385.9 Cr

Rs 3,410.7 Cr

Expenses

Rs 3,024.1 Cr

Rs 3,369.7 Cr

Rs 2,885 Cr

Profit/Loss

P: Rs 1,917 Cr

P: Rs 800.8 Cr

P: Rs 515.8 Cr

Zoho – Business Model

‘Marketing via Engineering’ is Zoho’s ultimate business model; it has let people use their applications with no initial cost and it neither earns through advertisements as well. Over 10,000 employees and a turnover of $590 million as of 2020.

It’s only their products’ quality that is behind the successful business model. With its ‘freemium model’, let you for a free sign-up initially, followed by specific charges for its premium upgrades program if needed.

Zoho believes in spending or reinvesting around 50% of its profits in new projects first. The total spending of Zoho is naturally less because the company always thought that products should speak up for themselves and refrains from spending 5% on marketing.

In Fact Zoho resorted to trolling Salesforce in the year 2013 by crashing their global user conference. That branding added to the pacing momentum of the company, which is growing at 35% each year.

Zoho is one similar company which got successful starting from a small apartment located in the Chennai cities. Which has come up as a leader in web- based business tools supplying a single cloud platform with all major applications to run a business entirely from the cloud.

Zoho – Market Competitors

  • Freshworks
  • Salesforce
  • Oracle
  • Pipedrive
  • HubSpot
  • QuickBase

Zoho - Goals

Sridhar Vembu says that the company will focus on expanding its distribution and cloud connectivity to rural areas to boost the local economy. Zoho’s vision is to restore the economic viability of rural regions through effective cloud technology.

April 25

0 comments

Govind Dadhich, Founder

This was a fun article to read, I hope you enjoyed it.

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