Zoho’s founder Sridhar Vembu has made waves with his candid reflection on why the company isn’t heading for an IPO anytime soon—a stance deeply tied to Zoho’s culture of long-term research, frugal innovation, and bold, Bharat-first bets like the now-viral Arattai app. This philosophy has come under the spotlight against a backdrop of major ministerial endorsements and a surging Swadeshi movement.
Unpacking Sridhar Vembu’s Vision
Vembu’s post sets a refreshingly honest tone: “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 had expressed scepticism that Arattai would ever gain any traction.” Instead, it pushed forward out of conviction, not investor demands, prioritizing Bharat’s engineering capacity—a principle Vembu sees as essential for national progress.
He stresses that Zoho is, at heart, an “industrial research lab that also makes money”: investing in ambitious deep-tech projects spanning AI, robotics, chip design, operating systems, compilers, and more, even when returns are distant or uncertain. For Vembu, frugality in leadership isn’t just a corporate value—it’s an echo of scientists and engineers at ISRO, and resembles how Japan approached development decades ago.
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. It was a "hopelessly foolish" project, and even our employees had expressed scepticism… https://t.co/vuELimKCv0
— Sridhar Vembu (@svembu) September 28, 2025
Swadeshi Endorsements Fueling Buzz
This long-game approach found powerful validation when Union ministers—including IT Minister Ashwini Vaishnaw and Education Minister Dharmendra Pradhan—publicly endorsed Zoho, signaling a government push toward Swadeshi adoption. Vaishnaw switched to Zoho’s productivity suite for official work, urging citizens to “join PM Modi’s call for Swadeshi,” while Pradhan called Arattai a “secure, user-friendly, and completely free” app developed entirely in India.
These endorsements aren’t just symbolic. They have amplified Zoho’s profile as a homegrown alternative to global giants—and sparked a wave of patriotic downloads, sending Arattai surging past WhatsApp and Telegram in Indian app stores.
Read this: Minister Ashwini Vaishnaw Moves to Zoho, Urges Indians to Adopt Swadeshi Products for a Self-Reliant India
Arattai’s Meteoric Rise and Its Challenges
Arattai, which means “chat” in Tamil, started as an experimental project in 2021 but only found mainstream attention recently when privacy concerns and desires for “Made in India” technology hit a peak. In the last three days, Arattai saw user sign-ups skyrocket from 3,000 to 350,000 daily—a 100x surge. Zoho’s engineers are now working round-the-clock to ramp up infrastructure for another potential 100x peak.
Key Features:
- End-to-end encrypted messaging (though full encryption rollout is still in progress)
- Audio/video calls and group chats
- Multi-device support, including desktop and Android TV apps
- Local language interface prioritizing user privacy
Despite the excitement, surging usage has brought growing pains—delays in OTP verification, slower contact sync, and call glitches due to server overload. Zoho has acknowledged these challenges and promised rapid fixes as the team scales up.
Read this: Zoho Is the Only Company in the World That Can Take On Microsoft, Says Sridhar Vembu
Why Zoho Stays Private—and Why It Matters
Vembu’s philosophy explains Zoho’s resistance to going public: “We essentially ignore short term profits, as long as we don’t lose money,” he says. This allows us to pursue deep R&D and take risks that public shareholders rarely tolerate. As seen with Arattai, experimental projects can survive skepticism and flourish when not pressured by quarterly earnings calls—a rare luxury in today’s market.
For India’s tech ecosystem, Zoho sets an example for how patient capital and indigenous leadership can nurture breakthrough innovation—and how Swadeshi approaches can compete with global platforms on both features and philosophical vision.
The Road Ahead: R&D, Partnerships, and Bharat’s Tech Ambitions
Sridhar Vembu led firm continues to pour investment into long-horizon tech projects, partnering with startups and research organizations on everything from hardware and chip design to robotics, databases, and AI. While some initiatives, like its $700 million semiconductor venture, have faced setbacks—citing difficulties finding suitable technology partners—Zoho’s commitment to “Bharat capability” remains undimmed.
This unique blend of industrial research, frugal leadership, and Swadeshi philosophy is garnering attention not just from policymakers, but from a new generation of users eager for homegrown alternatives built with India’s needs in mind.
