Sridhar Vembu’s Zoho has nearly doubled its revenue over the past three years. The company’s revenue from operations, which was at Rs 6,711 crore in FY22, has increased to Rs 12,313 crore in FY25.
As per the company’s annual report, while Zoho’s revenue grew by 17.8% on a yearly basis in FY25, its profit remained largely flat in the year. Zoho’s profit stood at Rs 3,191 crore in FY25, down 3.3% YoY, compared with Rs 3,299 crore in the previous year.
The primary reason behind the lower profit for the company despite an increased income is the rise in its expenses. Zoho’s expenses, which stood at Rs 7,062 crore in FY24, rose to Rs 9,217 crore in FY25.
What are Zoho’s sources of income?
Zoho’s primary products, its IT management and business application software, are the key revenue generators. Zoho Suits, its flagship product, was responsible for generating 57% of its revenue in FY25. Zoho Suite brought a revenue of Rs 7,051 crore in FY25.
Furthermore, Zoho’s ManageEngine brought in a revenue of Rs 4,863 in FY25, about 39% of its total revenue. Zoho’s also added income of Rs 1,231 crore from sources such as interest gains and gains on sale of current investments.
As for the company’s expenses in FY25, employee benefits accounted for 47%of its total costs. Zoho’s employee benefits cost stood at Rs 4,347 crore in FY25, rising 29% YoY from Rs 3,372 crore in the previous fiscal year. Its advertising costs also increased by 31% YoY to Rs 2,230 crore.
Key markets for Zoho
While Zoho is currently expanding significantly in the Indian market, North America remains the company’s biggest market. In FY25, the North American region accounted for 41% of Zoho’s total revenue. The company’s revenue from the region stood at Rs 5,028 crore.
Zoho’s revenue from its operations in Asia stood at Rs 3,711 crore, about 30% of the total revenue. Europe was its 3rd biggest market, accounting for 23% of revenue, about Rs 2,919 crore.