Zoho’s FY23 Operational Revenue Exceeds Rs 8,700 Crore

• ByStartupStory     |    February 2, 2024

Bootstrapped Software-as-a-Service unicorn Zoho reported consolidated revenue of Rs 8,703 crore in the financial year 2023 (FY23), marking a nearly 30 percent increase year-on-year despite a global slowdown in demand for the software industry.

Zoho’s consolidated net profit stood at Rs 2,836 crore, reflecting a marginal 3 percent year-on-year rise due to increased expenses, as per RoC filings sourced from data and research firm Private Circle. In FY22, Zoho had reported a consolidated revenue of Rs 6,710 crore.

ManageEngine, the company’s enterprise IT management division, contributed significantly to the total revenues, reporting a revenue of Rs 4,327 crore.

The North America business remained Zoho’s largest revenue driver, generating Rs 3,988 crore, followed by Asia (including SEA and India) at Rs 2,283 crore and Europe at Rs 1,952 crore. However, the firm’s total expenses for FY23 rose to Rs 5,392 crore, a 51 percent increase year-on-year, primarily driven by a surge in employee benefit expenses. Zoho’s employee benefit expense escalated by 49 percent to Rs 2,721 crore compared to Rs 1,826 crore in the previous year.

The SaaS industry in India faced a demand slowdown due to macroeconomic pressures, impacting several companies. Zoho’s co-founder and CEO, Sridhar Vembu, noted in October 2023 that the company experienced a business slowdown in September across countries and products due to these pressures.

Despite the challenges, Zoho expanded into new markets and ventured into new businesses like Gen AI and hardware. The company invested significantly in manufacturing hardware devices such as tech-enabled medical equipment, data center-focused hardware devices, and augmented reality (AR) equipment.

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