Chennai-based SaaS unicorn has surpassed $1 billion in sales, generating an operating revenue of Rs 8,703 crore for FY23—up 29% from Rs 6,710 crore earned in the previous fiscal year.
The company’s overall revenue, inclusive of other income, was Rs 9,158 crore in the fiscal year ended March 31, 2023.
The Sridhar Vembu-led unicorn’s net profit was up 3%, totalling Rs 2,836 crore in FY23 compared with Rs 2,749 crore in the previous fiscal year.
The startup’s total expenses reached Rs 5,392 crore, a 50% increase from Rs 3,571 crore incurred in the previous fiscal year.
Notably, the 14,000+ member team allocated a major portion of these expenses to employee benefits, with spending rising to Rs 2,721 crore in FY23 from Rs 1,826 crore in FY22. In FY23, the startup’s advertising expenses increased to Rs 1,354 crore, rising 90% from Rs 714 crore in FY22.
ManageEngine, the enterprise IT management product by Zoho, experienced a surge in revenue, reaching Rs 4,327 crore in FY23, compared with Rs 3,157 crore in FY22. Zoho—the product under the same umbrella—witnessed revenue growth totalling Rs 4,359 crore in FY23, up 23% from Rs 3,532 crore earned in the previous fiscal year.
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Key primary markets
Zoho’s operating revenue from North America, which accounted for 45.8% of its total operating revenue, increased to Rs 3,988 crore in FY23 from Rs 3,198 crore in FY22.
Also, the startup’s revenue from Asia grew 2.5X, reaching Rs 2,283 crore in FY23 compared with Rs 883 crore earned in the previous financial year.
It also saw an increase in the revenue generated from Europe, reaching Rs 1,952 crore compared with Rs 1,504 crore in FY22.
With a user base exceeding 90 million across 600,000 businesses, Zoho, which initiated its operations in the late 1990s, redirected its focus to the Indian market in 2014. Since then, it has established offices in key cities like Delhi, Mumbai, Kolkata, Bengaluru, and Hyderabad.
Previously known as AdventNet Inc, the company has forged partnerships with players such as Tata Consultancy Services, Hexaware, WNS, Tech Mahindra, Infosys, and Wipro.
Edited by Kanishk Singh
