In two years, Zoho’s core product line has increased by 2.5 times

• ByStartupStory     |    October 25, 2022

As businesses increasingly choose comprehensive solutions and financially scalable SaaS platforms amid a growing propensity to closely monitor software spending, Zoho’s product suite Zoho One has grown two and a half times over the last two years and has a customer base of 50,000 businesses, a top executive said. 

Businesses can manage sales, marketing, HR, analytics, and more with the help of Zoho One, which brings together more than 45 applications. In order to allow businesses to establish connections or even their own apps through Zoho One, Zoho chose to offer a packaged set of apps. 

Zoho One, which launched five years ago, has reached significant revenue and client base milestones said Zoho One’s chief of marketing,Hariharan Muralimanohar.

After the CRM (customer relationship management) and CRM Plus suites, he claimed, “Zoho One is our top revenue-making suite at the moment.” He also noted that the suite’s share of Zoho’s customer base had increased gradually over time. He withheld information on the revenue earned by the product line or by the privately held company. 

Since its launch, the suite has expanded globally at a compound annual growth rate of 133%, with pandemic-driven digital adoption boosting demand for tools like the video conferencing platform Zoho Meeting and others like collaboration and project management software. The CAGR for Zoho One in India is 118%.

According to Muralimanohar, approximately 45% of the entire demand matrix for software came from tier-II and -III cities, demonstrating a substantial uptake of digital technology in non-metros. The banking and financial services, retail, education, and information technology verticals all continued to be big buyers. 

According to him, over 92% of early adopters of the product suite have chosen to upgrade their licences, while about 37.5% of Zoho One’s new clients come from mid-market and large enterprises.

Customers of Zoho One can create their own apps with the help of a set of developer tools, according to Muralimanohar. An example of a low-code app creation platform is Zoho Creator. In contrast to software product suites that were fueled by acquisitions and might not provide the connectivity and data integrations, all of the apps that make up Zoho One were created from the ground up, he noted. 

Zoho, lead by Sridhar Vembu, is of the opinion that the market is closely monitoring SaaS software from a spending aspect in an effort to prevent purchases of overpriced software. 

“It makes sense to reduce costs when a recession is on the horizon. Businesses are looking into ways to lower the cost of ownership, “said Muralimanohar.

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