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Zoho becomes India’s first bootstrapped startup to cross ₹12,000 crore in FY25

Zoho Corporation has crossed a major milestone in FY25, reporting annual revenue of ₹12,313 crore, becoming one of the few bootstrapped technology firms in India to achieve this scale. The company posted a 17.8% year-on-year growth, reflecting sustained demand for its enterprise software portfolio.

Including other income of ₹1,231 crore—primarily from interest and investment gains—Zoho’s total income rose to ₹13,544 crore, up from ₹11,193 crore in the previous fiscal. Over the past three years, the company has nearly doubled its revenue, underlining consistent expansion across markets.

Software Drives Growth, Global Markets Remain Key

Zoho’s core software offerings continued to anchor its business. The flagship Zoho suite contributed ₹7,051 crore, accounting for 57% of total revenue, while its IT management division ManageEngine generated ₹4,863 crore, or 39%. Services made up the remaining share.

Geographically, North America remained the largest contributor with 41% of total revenue at ₹5,028 crore. Asia followed with ₹3,711 crore (30%), while Europe accounted for ₹2,819 crore (23%). Other regions, including Latin America, Africa, and Australia, contributed smaller shares.

Costs Rise Faster Than Revenue, Impacting Profit

Despite strong topline growth, profitability remained under pressure due to a sharp rise in expenses. Total costs increased 30.5% year-on-year to ₹9,217 crore. Employee expenses alone stood at ₹4,347 crore, forming nearly half of the total expenditure, while spending on advertising and promotions rose significantly to ₹2,230 crore.

As a result, net profit saw a marginal decline to ₹3,191 crore from ₹3,299 crore in FY24. Higher tax outgo, which increased to ₹1,112 crore, also weighed on earnings. The company reported an EBITDA margin of 31.27% and a return on capital employed of 16.85%.

Leadership Shift and Strategic Expansion

During the year, founder Sridhar Vembu transitioned to the role of Chief Scientist, with Shailesh Kumar Davey taking over as Group CEO. The company also entered the fintech space with the launch of Zoho Pay, expanding beyond its traditional enterprise software focus.

Zoho continues to strengthen its presence in India, including securing contracts with government ministries for email services. Backed by a strong cash position and a privately held structure, the company is prioritising long-term growth over immediate margin expansion.

With ongoing investments and diversification into new segments, Zoho is positioning itself to navigate evolving market dynamics, including the growing influence of artificial intelligence, while maintaining steady business growth.