Software-as-a-services player Zoho Corporation said that India is on track to become its second largest market globally, behind the US, within the next three years. This is especially for its enterprise IT management division ManageEngine, which it expects to reach revenue of $1 billion in the next 2-3 years. This despite the fact that globally SaaS players are seeing a slowdown.
Sridhar Vembu, CEO and co-founder of Zoho, said, “ManageEngine has long been Zoho Corp’s bread and butter. Over the last five years, ManageEngine's cloud services averaged 70 per cent year-on-year growth, peaking during the time of the Covid-19 pandemic. We see tremendous potential in India. The rate of digitalisation is picking up here at a rapid pace, making IT management more important than ever and setting up ManageEngine to soon reach $1 billion in global revenue."
Vembu added that the company will survive the currency macro uncertainties. “Growth is slower than it was a year ago but we are still doing well...What we can hope to do is survive the earthquake. We have built a strong foundation and we expect to survive this,” he added.
He said that Zoho will continue to hire for FY24 as well. “We will continue to hire in FY24, mostly people in customer-facing roles,” said Vembu.
In 2022, Zoho Corp became the first bootstrapped company in India to record an annual revenue of $1 billion. The company’s ManageEngine division, established in 2002, has served over 280,000 organisations across 190 countries, including more than 10,000 organizations in India.
Currently the third largest revenue market worldwide for ManageEngine, India is set to surpass the United Kingdom in the next three years. ManageEngine India has registered a year-over-year growth of 50 per cent in 2022 while the customer count increased by 30%, driven by demand primarily from the BFSI, manufacturing and real estate sectors.
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Shailesh Davey, Co-Founder and Vice President of Engineering of Zoho Corp said, “We operate our own data centers, and will be launching two more globally this quarter, and are always working towards the effective use of both hardware and software, so as to pass on more benefits to our customers. One of those benefits is choice: We’re one of few vendors to support both on-premises and on cloud deployment models to manage hybrid IT infrastructure.”
Rajesh Ganesan, President, ManageEngine said, "With the rise in digital adoption, businesses are innovating with new possibilities and operating models in pursuit of their objectives. Managing complex digital infrastructures while complying with stringent compliance mandates is a top challenge for business leaders today. With deep expertise built over the last two decades, ManageEngine solutions have evolved into an integrated platform for the end-to-end management of our customers' digital enterprises."
According to the recent regulatory filings, Zoho reported net profit of Rs 2,700 crore, a growth of 43 per cent YoY for FY22. Revenue for the period was at Rs 6,711 crore, up 28 per cent YoY.