On a consolidated basis, Zoho Corp’s profit increased to over INR 800 Cr in FY2020
The company doubled its profit on a standalone basis, whereas its revenue almost touched INR 2500 Cr About 54% of the company’s total spending went into employee benefits, representing a 10% increase from FY2019.
Notably, only 4.5% of these revenues – Rs 192.8 crore – were booked in India and the rest Rs 4,082 crore were collected from services provided outside the country. Revenue from its India operations has grown by 59.2% while revenue from the other geographies it operates in have surged by 28.1% during FY20.Zoho operates with 12 subsidiaries which handle its operations across the globe.
At Rs 1,108.32 crore, Zoho Corp (US) had the biggest share in the consolidated comprehensive income followed by Zoho Europe which operates out of the Netherlands and has contributed Rs 509.06 crore. Importantly, the entities which handle the information technology park business and its China-based subsidiary have reported losses this year.The Sridhar Vembu-led company collected another Rs 111.3 crore as non-operating revenues during the fiscal ended in March 2020.
Zoho Corp filed a lawsuit against Freshworks in March 2020. The company claims that Freshworks, which was started by two Zoho employees Girish Mathrubootham and Shan Krishnasamy in 2010, stole its confidential information and built the business as well as gained investors’ interest. Zoho, in the lawsuit, also explained how many of Freshworks’ product offerings originated as tools developed for the company’s own internal use. This includes Freshworks initial offerings customer support tracking and management software Freshdesk as well as IT Service Management (ITSM) tool Freshservice. Zoho alleged that the two Freshworks founders continued to develop other products which were in line for launch at Zoho.
Besides this, Zoho has also alleged that Freshworks recruited over a hundred employees from Zoho to gain access company’s confidential customer and competitive marketing information. About seven employees from Zoho’s technical and sales team joined Freshworks in the first two months of 2020. The company has also accused Freshworks of improperly accessing Zoho’s customer data. As the legal battle takes its course, the legal professional charges for both the companies are bound to rise.
