Sridhar Vembu was born in Thanjavur, Tamil Nadu, and displayed remarkable academic talent from a young age. He ranked 27th in the highly competitive IIT JEE, securing a place at IIT Madras where he excelled in his studies. Vembu’s pursuit of knowledge led him to Princeton University for further education. His career began at Qualcomm in 1994, where he worked as a wireless engineer, setting the stage for a promising future.
Sridhar Vembu’s Entrepreneurial Journey
Leaving Qualcomm to Start AdventNet
In the mid-90s, driven by entrepreneurial aspirations, Vembu left his lucrative job at Qualcomm. His brothers had initiated a software venture in Chennai, and a friend from IIT Madras had conceptualized networking software. Sensing a significant opportunity, Vembu founded AdventNet in 1996, aiming to provide software solutions to telecom providers. Their initial product, Web NMS, a digital operations management tool, gained remarkable traction, outshining competitors like HP at a US tech fair.
Rapid Growth and Initial Success
By 1998, AdventNet had achieved sales of 6 crores. Under Vembu’s leadership as CEO, the company thrived. In 2000, securing Cisco as a major client propelled their sales to 50 crores. Despite receiving an offer from an investor to invest 50 crores at a valuation of 700 crores, Vembu’s long-term vision led him to decline.
Overcoming the Dotcom Crash
The dotcom crash of 2001 severely impacted AdventNet, reducing its customer base from 150 to just three. Despite an offer to sell the company for 150 crores, Vembu refused. He utilized the company’s cash reserves to pay employees, foregoing his own salary for four years. During this challenging period, they developed ManageEngine, an IT management tool for mid-sized companies, which quickly gained popularity and was adopted by 60% of Fortune 500 companies.
Transition to Zoho Corporation
Rebranding and Expansion
During this time, Vembu acquired the domain name “Zoho” from a defunct hospitality company. In 2005, the launch of Zoho CRM marked a pivotal moment for the company. By 2008, Zoho CRM had garnered one million users. In 2009, AdventNet was rebranded as Zoho Corporation, expanding its offerings to over 25 products and 50 mobile apps. By 2015, Zoho had grown to 12 million users and achieved sales of 1,800 crores.
Competing with Industry Giants
Zoho’s competitive pricing offered similar functionalities as Salesforce at a fraction of the cost, posing a significant challenge to the industry giant. Despite Salesforce’s attempts to acquire Zoho, Vembu remained steadfast, declining the offer. By November 2021, Zoho’s revenues had reached 5,230 crores, solidifying its status as a billion-dollar company. The COVID-19 pandemic further accelerated Zoho’s success, with revenues climbing to 6,711 crores and profits reaching 1,918 crores.
Current Status and Vembu’s Lifestyle
Zoho’s Continued Success
Today, Zoho Corporation boasts revenues of 8,700 crores with a profit of 2,800 crores, ranking among the world’s largest software companies. Despite his immense success and a net worth of 28,000 crores, Sridhar Vembu maintains a simple lifestyle, living in his native Thanjavur village and riding his bicycle. His journey from a small-town boy to the founder of a 9,000-crore company without any external funding exemplifies his vision, perseverance, and innovative spirit.
Vembu’s Humble Lifestyle
Indian business mogul Sridhar Vembu recently caused a stir on the internet by showcasing his latest vehicle, an electric three-wheeler. As the CEO of Zoho Corporation and a Padma Shri Awardee, Vembu is the 55th richest person in India with a net worth of USD 3.75 billion according to Forbes. Despite owning a Tata Nexon EV, he prefers the electric three-wheeler for shorter trips under 10 km, embodying his humble and practical approach to life.
