Indian tech company Zoho is now shifting its focus from horizontal SaaS to vertical SaaS, aiming to offer highly tailored software solutions for specific industries. CEO Mani Vembu described vertical SaaS as a major growth opportunity, comparing its current stage to the early days of horizontal SaaS two decades ago.
Industry-Specific Offerings in Focus
Zoho plans to build specialised products for sectors like auto dealership management (Auto DMS) and banking, financial services, and insurance (BFSI). By doing so, the company aims to cut down software implementation times from 18 months to just six. Zoho is now working on scaling and productising its early wins in these areas.
Zoho Bets on In-House AI
A key differentiator in Zoho’s approach is its use of proprietary AI tools. Instead of relying on general-purpose AI models, Zoho has developed its own large language model called Zia LLM, built from scratch with 7 billion parameters. The company is also deploying Zia Agents, which are task-specific AI tools that help automate day-to-day business tasks such as email drafting, report creation, and meeting scheduling—while still allowing human oversight.
End-to-End Control Over AI Stack
Zoho says its control over every layer of its tech stack—from data to models to the user interface—gives it an edge in offering deep, focused AI solutions. “We don’t need to compete with ChatGPT,” said CEO Mani Vembu. “Our goal is to solve specific business needs.”
Leadership Transition and Growth Strategy
Mani Vembu took charge of the company earlier this year after his brother and former CEO, Sreedhar Vembu, transitioned into the role of chief scientist. Under Mani’s leadership, Zoho is intensifying its push into vertical SaaS while continuing to invest in its in-house AI capabilities.
India’s Largest Privately Held Tech Firm
Zoho remains India’s biggest privately held tech services firm and competes with large IT players such as LTIMindtree, Mphasis, Coforge, and Persistent Systems. Its vertical SaaS and AI-focused strategy marks a new chapter in its growth journey.
