Interview with Sridhar Vembu, Founder and CEO of Zoho Corporation, by Nisha Krishnan, CEO and founder, Channeliam.com
I consider meeting you to be one my greatest joys in life. Cofounder of a SELF FUNDED UNICORN like ZOHO!
In your 50s you lead the life of a saint. You are an inspiration to millions of youth.
What makes you so simple?
I always live the way I grew up. This is how my parents live. Now if I was ready for a change myself, it would have been a change.
But I follow the same lifestyle as my parents. I live well. I don’t know if I can be called a monk as you mentioned. I am satisfied with this life. I have enough food, enough clothes, go wherever I want, go to rural areas, that’s why I love such trips.
I love the freedom to think and discover new things. That is more important to me than anything else. To me, luxury means the freedom to think, discover and create technology. That’s what I like.
Your technology is more village centric. Focusing on the rural areas of Tamil Nadu like Tenkasi. You are mostly targeting rural sector empowerment.
What is the motive behind it?
I come from a rural background. My parents are also from a rural background. I spent most of my youth there. So I wanted to go back there.
Sridhar Vembu
There was a trend of many talented people relocating from the rural areas to the cities. I asked myself why it couldn’t be the other way around. Former President Dr APJ Abdul Kalam Sir has spoken about the PURA project to provide urban amenities in rural areas. He had a vision for rural areas. I also thought it was possible. Research and development (R&D) does not require hundreds of premises and large manpower. It can be done with limited resources. Even with just twenty people, a lot can be done in research and development. Research and development activities can be done by consolidating skills and creating necessary conditions. That is what we do in the villages of Tenkasi.
Nisha Krishnan: India has grown tremendously both externally and internally in the last few years. What do you think will be the next big development that awaits India in technology?
Sridhar Vembu: India’s current challenge is that we need to increase our R&D investment. We now have a lot of technology that we can rely on. But we have to be part of the production value chain. It is inevitable. Because we cannot move forward as users of technology alone. We should be able to be part of that value system. That’s a very distinct goal. This should certainly be our goal nationally. Government, Industry and the general public should be aware of this. Who controls the technology? How does technology rule the world? It is crucial that we understand this. Because it is essential to our national security, economic security and citizen welfare. So the investment in technology is also a necessity. We have the ability and the skills to do so. Here in Kochi, I am amazed by the talent in our startup sectors. Of course, I know how much talent there is in Kerala, but seeing that hard work is also a joy. If we look at Kerala’s talent pool, the GDP should be ten times bigger. Therefore, it is necessary for our start-ups and companies to further elevate our country through critical advancements.
It’s not easy to reach the $1 billion unicorn status by revenue alone. I know it was not a smooth ride. What were the challenges faced by ZOHO when it reached the milestone of being a unicorn?
How did you get over it?
The primary challenge is to stay till the end of this race. Be patient, because this whole world is moving in one direction. In many ways there will be pressures that hold us back. Now startups are also facing this challenge. You can build great companies only through long-term work. ZOHO has become a company that nurtures the ecosystem. Whether in Kerala or anywhere in India, we need companies that nurture the entire ecosystem of that region. We need it in Kochi, Thiruvananthapuram, Coimbatore, Pune and so on. Those companies must have a solid foundation. There should be deep roots in that area. Its ecosystem will grow with the presence of such companies and the talent they generate. That’s the model I followed. But the challenge in this is to continue working till the end. You shouldn’t be distracted. The key is to be consistent. There will be pressure to deviate. Sometimes even the thought of selling the company could arise. Companies that last until the end can make a clear and powerful reflection.
Do new startup founders need to focus on any particular sector?
We need to focus on technology rather than sector. Technology drives our daily lives. What type of gum is used to pack the paste when you wake up in the morning and brush your teeth? What type of machine fills it? Everything is technology. Looking at the world through the eyes of technology, we need to invest in long-term research and development technology. A long term outlook is needed. Must be able to do well regardless of financial fluctuations and Nurture talent. Create opportunities especially for our citizens for whom opportunities are not available. Many people often ask how people stay with you. There is only one answer, invest in talent and nurture their talent. There are 833 districts in India. Every district should focus on one or two technology related research & development. All these technologies are very important for our life today.
Zoho is now a unicorn? What is the next goal?
Sridhar Vembu: We never explain ourselves as a unicorn. Nor are the people who look so closely at the valuation. We operate on a billion-dollar scale. Nevertheless, if you look at the sector as a whole, Microsoft is a $200 billion firm. Salesforce has a $40–35 billion market value. Thus, there is still a long way to go. We are progressing quite well. It will take an additional 25 years of work. That is what we are concentrating on.
