Zoho Corporation: A Village Startup's Journey to ₹2800 Crore Profit



This blog post explores the inspiring journey of Zoho Corporation, a billion-dollar company that started in a village. It delves into the life of its founder, Sridhar Vembu, and the company's financial success, including a detailed breakdown of its revenue and notable costs. The post highlights how determination and hard work can lead to great heights, regardless of where one starts. It's a must-read for aspiring entrepreneurs and business enthusiasts.

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Humble Beginnings

Leaving a well-paying job to venture into the uncertain world of business is not for everyone. Yet, this is exactly what Sridhar Vembu, the founder of Zoho Corporation, did. An IT engineer in America, Vembu decided to leave his job and start a business. But he didn't choose a bustling metro city for his venture; instead, he started his business in his village.

The Journey of Sridhar Vembu

Sridhar Vembu, originally from Tamil Nadu, comes from a middle-class family. He graduated in Electrical Engineering from IIT Madras in 1989. After graduation, he moved to America to pursue a PhD and worked as an IT engineer in a reputable company. However, he soon returned to India, much to the dismay of his family. But Vembu was determined to start a business and he began his journey without heeding to anyone's advice.

The Birth of Zoho Corporation

In 1996, Vembu and his brother started the software development company AdventNet. After about 13 years, the company was rebranded as Zoho Corporation. Today, Zoho is a billion-dollar company, but Vembu still maintains his humble lifestyle, often seen traveling on a bicycle.

Financial Success of Zoho Corporation

Zoho Corporation recently released its quarterly results for the financial year 2023. The company registered a consolidated revenue of ₹8,703 crore, marking an increase of almost 30%. According to the Registrar of Companies (ROC), Zoho's consolidated net profit stood at ₹2,836 crore, a marginal increase of 3% year-on-year (y-o-y) due to an increase in expenses. In comparison, Zoho reported a consolidated revenue of ₹6,711 crore in FY22.

Revenue Breakdown of Zoho Corporation

Apart from its main revenue sources, the company earned ₹455 crore from interest and profit on financial assets in FY 2023, taking its total revenue to ₹9,158.9 crore. According to the report, employee benefit expenditure accounted for 50.5% of the total expenditure. This cost increased by 49% to ₹2,722 crore in FY 2023, up from ₹1,827 crore in FY 2022.

Notable Costs of Zoho Corporation

Other notable costs include advertising and promotion expenses, which increased by 89.4% to ₹1,354 crore in FY2023, up from ₹714.8 crore in FY22. Zoho also incurred expenses for web hosting, data center, legal, and other activities during FY23, resulting in a 51% increase in total spend from ₹3,572 crore in FY22 to ₹5,393 crore in FY23.

Conclusion

Zoho Corporation's journey from a village startup to a billion-dollar company is truly inspiring. It serves as a testament to the fact that with determination and hard work, one can achieve great heights, regardless of where they start.

Keywords: Zoho Corporation, Sridhar Vembu, Village Startup, Billion-Dollar Company, Financial Success, Revenue Breakdown, Notable Costs, Inspiring Journey, Business Venture, Software Development, IT Management Software, Business Application Software, Consolidated Revenue, Net Profit, Employee Benefit Expenditure, Advertising and Promotion Expenses.



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