Here’s the latest Zoho Arattai IPO update: Zoho co-founder and CEO Sridhar Vembu has made it clear that the software company is not in a hurry to go public, emphasizing that its focus remains on innovation and long-term growth. The recent success of Zoho’s messaging app, Arattai, underscores why the company prefers staying private.
In a post on X, Vembu explained that Arattai would likely never have been developed under the financial pressures faced by public companies. “Arattai would very likely not have been built by a public company that faces quarter-to-quarter financial pressure. It was a ‘hopelessly foolish’ project, and even our employees were skeptical it would gain traction,” he said.
Vembu stressed that Zoho’s strategy is driven by a desire to strengthen India’s engineering capabilities. “We developed it because we need strong engineering talent in Bharat. Many more such initiatives are needed, and we are committed to this,” he added.
As part of its long-term approach, Zoho is running several R&D-heavy projects in areas including compilers, databases, operating systems, security, hardware, chip design, robotics, and artificial intelligence. The company also invests in firms where immediate profitability is not expected, treating itself as a self-funding industrial research lab.
“Zoho ignores short-term profits as long as we remain financially stable,” Vembu explained. He noted that the company’s leadership maintains a frugal lifestyle, similar to ISRO engineers, to focus resources on innovation rather than quarterly gains.
Framing this philosophy as central to Zoho’s identity, Vembu called it the “essence of Bharat,” likening it to Japan’s developmental model. While speculation about a Zoho IPO continues, this Zoho Arattai IPO update makes it clear that the company prioritizes building a strong engineering foundation and funding ambitious R&D projects over responding to stock market pressures.
