Zoho Announces Major Investment in Saudi Arabia to Support Digital Transformation

Preeti Bali / 1:07 pm / March 7, 2024

Chennai-based SaaS giant, Zoho, has unveiled plans to invest a substantial sum of ₹1,100 crore (SAR 500 million) in Saudi Arabia. This investment aims to bolster the country’s digital infrastructure and establish strategic partnerships with local government entities, aligning with Saudi Vision 2030.

Empowering SMEs Through Technology Access

Zoho is dedicated to empowering small and medium-sized enterprises (SMEs) in Saudi Arabia. The company has allocated ₹221 crore specifically for these businesses, allowing them to access Zoho’s suite of over 55 cloud applications and training programs for ten years.

Expanding Footing in Saudi Arabia

Demonstrating their commitment to the region, Zoho has established two data centers in Jeddah and Riyadh, ensuring compliance with the Personal Data Protection Act (PDPL). Additionally, they have already hired 25 Saudi Arabian employees, with plans for further expansion.

Building a Strong Local Presence

Sridhar Vembu, CEO and Co-founder of Zoho Corp., emphasized the company’s strong foundation in research and development, highlighting their investment in building a complete technology stack, including their own data centers. He further stated, “We have our robust solutions available in Saudi Arabia through our two established brands: ManageEngine and Zoho that are serving the local businesses.”

Zoho’s commitment to Saudi Arabia extends beyond just technology. They prioritize building a strong local presence, as evidenced by the fact that 83% of their local team comprises Saudi nationals. “With our philosophy of transnational localism, we are committed to building strong roots here in order to serve the businesses and the community long term. We are here to stay, build and serve,” Vembu added.

Global Expansion and Financial Performance

Zoho boasts a global presence with 18 data centers, and they are actively expanding their reach in various locations, including Mexico and India. They recently opened an office in Mexico and plan to establish 100 rural offices in India, including a campus in Tirunelveli.

On the financial front, Zoho achieved significant success in February by surpassing $1 billion in sales. For FY23, they generated an operating revenue of ₹8,703 crore, reflecting a 29% increase compared to the previous year. Their overall revenue reached ₹9,158 crore, with a net profit that grew by 3% to ₹2,836 crore in FY23, compared to ₹2,749 crore in the previous year.

Founded in the late 1990s, Zoho has established a strong user base of 90 million across 600,000 businesses in India. They maintain offices in key Indian cities such as Delhi, Mumbai, Kolkata, Bengaluru, and Hyderabad.

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