Zoho Announces Strategic Investments, Surpasses 65% CAGR Milestone

Zoho has announced significant investments across its portfolio to accelerate its growth in the upmarket segment. Over the past three years, Zoho has achieved an impressive compound annual growth rate (CAGR) of over 65% in annual recurring revenue (ARR) within the mid-market and enterprise segment in India. This segment now accounts for more than 50% of Zoho’s ARR in the country.

Globally, Zoho has also experienced a 65% 3-year CAGR within the mid-market and enterprise segment, which now represents one-third of the company’s entire business. With over 90 million users across more than 600,000 businesses, Zoho has established itself as a trusted software provider.

Sridhar Vembu, Co-founder and CEO, Zoho Corporation, attributed the company’s success to its strong foundation in serving small and medium-sized businesses (SMBs). Zoho’s focus on usability and extensibility has allowed it to steadily improve its readiness for large organizations. The company aims to become the most seamless enterprise software vendor by prioritizing extensibility, usability, packaging, and go-to-market solutions.

Zoho’s upmarket growth in India is led by various sectors, including banking, financial services and insurance (BFSI), manufacturing, retail, fast-moving consumer goods (FMCG), pharmaceuticals, and IT. Some notable customers of Zoho include MakeMyTrip, PUMA, Axis Finance, Paper Boat, Samsonite, BigBasket, Tata Play Fiber, BYJU’S, and Mercedes-Benz India, among others. The company is actively collaborating with state and central government departments as well as public sector units (PSUs) to support their digitalization efforts.

To enhance account management capabilities and cater to the specific needs of large organizations, Zoho has expanded its customer-facing teams and opened offices in Delhi, Mumbai, Kolkata, Bengaluru, and Hyderabad.

Zoho has also announced strategic investments targeted at mid-market and enterprise businesses. These investments include expanding their Enterprise Business Solutions (EBS) to provide consulting, solutions engineering, implementation, and customer success expertise to large organizations. Zoho aims to strengthen its network of system integration (SI) partners, including Tata Consultancy Services, Hexaware, WNS, Tech Mahindra, Infosys, and Wipro, to create industry-specific solutions and develop customer best practices.

Furthermore, Zoho’s platform investments include expanding the Zoho Marketplace, which offers over 1,800 extensions, and providing no-code and low-code extensibility capabilities to accelerate deployment and customization. The company has also introduced new applications and enhancements, such as Zoho Contracts for centralized contract management and Zoho DataPrep for data transformation within Zoho CRM.

In terms of security and privacy, Zoho has launched Zoho OneAuth, a comprehensive multi-factor authentication application, and Zoho Directory, a secure platform for workforce identity and access management.

Through these investments, Zoho aims to further strengthen its position in the upmarket segment and continue supporting the digital transformation efforts of businesses and government entities in India and beyond.