Sridhar Vembu on Monday said he will step down as the Chief Executive Officer (CEO) of his software-as-a-service (SaaS) company Zoho. In a post on X, Vembu said he will take a new role as Chief Scientist in the company responsible for its deep research and development (R&D) initiatives.
“In view of the various challenges and opportunities facing us, including recent major developments in AI, it has been decided that it is best that I should focus full time on R&D initiatives, along with pursuing my personal rural development mission,” Vembu said.
Zoho’s co-founder Shailesh Kumar Davey will serve as the company’s new group CEO while another co-founder Tony Thomas will lead Zoho US. Moreover, Rajesh Ganesan will lead Zoho’s ManageEngine division and Mani Vembu will lead the Zoho.com division, Vembu announced.
“The future of our company entirely depends on how well we navigate the R&D challenge and I am looking forward to my new assignment with energy and vigor. I am also very happy to get back to hands on technical work.”
Vembu has long acknowledged the rapid changes in the AI ecosystem critical for the tech industry. He sees R&D as a critical driver to adapt and leverage these changes for Zoho’s continued success. By dedicating himself to deep technical work, Vembu seemingly aims to ensure Zoho stays at the forefront of innovation, addressing both opportunities and challenges posed by AI.
Moreover, alongside R&D, Vembu is tying his efforts to a personal mission of rural development, aligning technology advancement with societal progress.
The company had reported Rs 8,703 crore in consolidated revenue in FY23, growing by nearly 30 percent from Rs 6,710 crore in FY22 while its consolidated net profit increased by 3 per cent to Rs 2,836 crore. According to the data from Tracxn, the company was valued at $5.93 billion as of December 2022.
