Zoho registers over 65% CAGR from India's enterprise, SMB segments

Indian software-as-a-services company Zoho on Wednesday said it has achieved over 65% compound annual growth rate (CAGR) in India from the mid-market and enterprise segments.

The Chennai-headquartered firm announced investments across its entire portfolio to accelerate upmarket momentum, following “an impressive three-year period”.

The company said that the mid-market and enterprise segment now accounts for more than 50% of Zoho's annual recurring revenue (ARR) in India. Overall Zoho now serves over 90 million users across more than 600,000 businesses.

“Our humble roots in SMB have helped us systematically build powerful software with strong everyday usability,” said Sridhar Vembu, Co-founder and CEO, Zoho Corporation.

“With our strong DNA as a technology platform company, we have been able to steadily improve our maturity and readiness for large organisations by making the necessary investments. Zoho aims to be the most seamless enterprise software vendor in the market by focusing on extensibility, usability, packaging, and go-to-market solutions,” he added.

Zoho's upmarket growth in India is led by banking, financial services and insurance (BFSI), manufacturing, retail, fast-moving consumer goods (FMCG), pharmaceuticals, and IT sectors.

Some of its customers include MakeMyTrip, PUMA, Axis Finance, Paper Boat, Samsonite, BigBasket, Tata Play Fiber, BYJU'S, Star Health & Allied Insurance, Mercedes-Benz India, SpiceJet, IIFL Finance, Meril Life Sciences, Blue Star, Bosch, Zomato, Saint-Gobain, Deloitte and McDonald's, among others.

The company is also collaborating with state and central government departments and public sector units (PSUs) to support their digitalisation efforts. Through these strategic partnerships, Zoho is contributing to the modernisation of the public sector and driving digital innovation.

"By addressing the unique needs of Indian enterprises and government entities, our customisable solutions actively contribute to the digital transformation of the country," said Vembu.

With over 12, 000 employees globally, Zoho said it continues to hire customer-facing teams and opened offices in Delhi, Mumbai, Kolkata, Bengaluru and Hyderabad to enhance account management capabilities and cater to the specific needs of large organisations.

In January, the company said that it reported a consolidated net profit of Rs 2,700 crore in FY22, up nearly 43% year-on-year on the back of a rise in revenue from its enterprise IT management software business. 

Vembu also said that time that while the company is “cautiously optimistic” about its growth prospects in the coming fiscal, it is "looking to increase its headcount by 1,000 in FY24, even as it remains committed to not laying employees off".