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Home » Zoho Chooses Innovation Over Going Public
News Update

Zoho Chooses Innovation Over Going Public

Zoho co-founder Sridhar Vembu explains why the company will stay private while Arattai grows rapidly, emerging as a homegrown alternative to WhatsApp and a symbol of India’s focus on long-term innovation
News DeskBy News Desk1 October 2025No Comments2 Mins Read
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Zoho co-founder Sridhar Vembu confirmed the company has no plans for an IPO. He said products like Arattai wouldn’t exist if Zoho faced the short-term pressures of public markets.

Arattai: A Risky but Important Project

Vembu described Arattai as a “hopelessly foolish” project that some employees doubted. Still, Zoho built it to develop strong engineering capabilities in India.

Zoho Arattai growth and IPO decision

Focus on Long-Term Innovation

Zoho is investing in research across compilers, databases, operating systems, security, hardware, chip design, robotics, and AI. Vembu explained that the company backs ventures that may not make money soon, prioritizing long-term innovation over short-term profits.

He also highlighted a culture of frugality among leaders, similar to how ISRO scientists work. “This is the essence of Bharat,” he said.

Social Media Praises Vembu

Vembu’s post went viral, with users applauding his clear reasoning for not going public. Many noted that public companies often avoid bold R&D because of financial pressures.

Arattai’s Explosive Growth

Arattai has grown rapidly, with daily sign-ups jumping from 3,000 to 350,000 in just three days. Zoho is quickly scaling infrastructure to handle the surge and prepare for even bigger growth.

Industry Recognition

Edelweiss Mutual Fund chief Radhika Gupta congratulated Vembu and Arattai, calling it a milestone for a homegrown messaging app. She praised the potential for more world-class Indian brands over the next 20 years.

Perplexity AI CEO Aravind Srinivas also celebrated Arattai’s rapid adoption, noting it as a strong alternative to global messaging apps.

Arattai messaging app banner Indian tech innovation long-term tech strategy Sridhar Vembu interview Zoho Arattai growth Zoho IPO decision Zoho R&D projects
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