Zoho IPO unlikely soon, hints Sridhar Vembu; focus on R&D initiatives

Zoho founder Sridhar Vembu said the company will not seek an IPO soon, citing the success of Arattai and its focus on Bharat-specific research and development projects

The success of Arattai, a messaging app developed by Zoho Corporation, indicates why the company will not go for an initial public offering (IPO) in the near future. In the last three days, Arattai’s traffic zoomed 100-fold, with sign-ups rising from 3,500 to 350,000 per day.

 

"We understand the push for Zoho to go public. But let me state the reality: Arattai would very likely not have been built by a public company that faces quarter-to-quarter financial pressure," its Founder Sridhar Vembu posted on X, calling it a “hopelessly foolish” project, as even its employees had expressed concerns regarding traction.