How Zoho became $1B company without a dime of external investment…

…and kept its soul intact in the process

The traditional startup fever dream goes something like this: You come up with a revolutionary idea for a startup in your dorm room. You quit school and take your idea to Sand Hill Road, where VCs shower you with cash. Your company grows quickly. You eventually get a valuation of over $1 billion and you go public to great fanfare.

That’s the mythology anyway, but what if there were another way? What if you could grow a $1 billion company without the outside investment, the crazy sales and marketing spend, the pressure to grow ever faster?

Zoho, a company that has a broad set of front- and back-end business software, has defied that growth and investment stereotype to great success. Zoho reports that revenue last year exceeded $1 billion — although as a private entity, it didn’t supply an exact number. Yet it has never taken so much as a penny of external investment.

By developing the company on its own terms, Zoho has been able to build a strong internal culture steeped in R&D and product development, growing slowly but steadily without having to deal with any investor interference whatsoever.

Zoho’s product catalog, which exceeds 50 products, covers everything from a traditional office suite to business intelligence, finance, sales and marketing, customer service and too many other software categories to list here. Using a freemium model to drive usage, it competes with giants like Salesforce, Google, Microsoft and Oracle yet has found a way to thrive in spite of such a harsh competitive landscape.

I spoke to founder and CEO Sridhar Vembu, along with some industry experts, to get a better sense of how Zoho has grown on its own terms, and how this “little engine that could” keeps rolling along.

Source link

The Press Walla

The Press Walla is the India's fastest growing youth online magazine which covers all latest trending stories from entrepreneurship, business, entertainment etc

Related Articles

Leave a Reply

Your email address will not be published.

Back to top button