From Bootstrapped to Half a Billion Dollars- Lessons from the Unusual Case of Zoho

Abstract

Purpose:The case discusses the journey of Zoho and how an unknown upstart technology company took calculated steps to build a software platform containing a range of products. It also touches upon how global company was grown profitably in the heartlands of rural India by bootstrapping, frugality and thinking beyond products. This will help students on entrepreneurship to appreciate the possibility of developing products without using external funds and understand the need to build ecosystem platforms capable of adding multiple products.

Design/ Methodology/ Approach: The case has been written using secondary data from published sources. Divided into four parts, the case starts with a background on the founders, discusses the culture, growth strategies and changes in competitive focus. The final part touches upon the launch of a flagship product and includes plans for launching products in other sectors.

Originality/ Value: The case provides a unique perspective on an unusual company that has chosen to remain private, shied away from venture capitalists and yet has achieved financial success. By focusing on R&D more than marketing, the company was able to create a bundled product and offer it to customers at very competitive prices.