In the dynamic world of Indian startups, a unique group known as the “Zoho Mafia” has emerged as a force to be reckoned with.
Much like the PayPal Mafia in Silicon Valley, this cohort comprises former Zoho employees who have ventured out to create their own successful enterprises.
Let’s dive into the fascinating journey of these startups, their achievements, and the impact they are making in the industry.
Highlights of the Zoho mafia;
- 19 startups under its umbrella that we were able to analyse
- Collective valuation of ₹69,601 cr
- Created over 6,294 jobs
- Sectoral dominance in Software as a Service (SaaS), other sectors include Internet of Things (IoT), Edtech, Retail, Cybersecurity, and Marketing Agency
- Founders spread across 28 alma maters
Collective Valuation
The Zoho Mafia has reached an impressive collective valuation of ₹69,601 crores.
However, this figure is based on the valuation of only 10 out of the 19 companies identified, due to the lack of external funding or foreign registrations for the others.
This staggering valuation underscores the potential and success of these startups, with notable players like Freshworks and Chargebee leading the charge.
Number of Startups Launched
The Zoho Mafia started gaining traction in 2017, with five startups launching in that year alone. The momentum continued into 2018, with another four startups emerging.
This rapid growth highlights the entrepreneurial spirit and innovative drive instilled in Zoho employees, who have carried these qualities into their own ventures.
Sector Spread
An overwhelming 67% of Zoho Mafia companies are operating in the Software as a Service (SaaS) sector. This is not surprising given Zoho’s own expertise and success in this area.
The SaaS sector has birthed 12 companies within the Zoho Mafia, followed by three companies in the Internet of Things (IoT) sector.
Other sectors include Edtech, Retail, Cybersecurity, and Marketing agency showcasing the diverse yet focused nature of these startups.
Jobs Created
The Zoho Mafia has been a significant job creator, generating over 6,294 jobs in India. Freshworks and Chargebee stand out as the largest contributors to this employment surge.
This figure is particularly impressive considering that the employee counts for eight companies were not accessible.
The ability to create jobs at this scale speaks volumes about the operational success and scalability of these startups.
Founders’ Alma Mater
Interestingly, only 5% of Zoho Mafia founders hail from tier 1 institutes such as IIT, IIM, or ISB.
This statistic highlights Zoho’s unique philosophy of hiring based on skills and potential rather than traditional educational pedigrees.
It also underscores the idea that successful entrepreneurs can emerge from diverse educational backgrounds, provided they have the right mindset and drive.
Conclusion
The Zoho Mafia is a testament to the transformative power of a strong, innovative corporate culture.
As these startups continue to grow and evolve, they are not only contributing to the economy but also setting new benchmarks for success and innovation in the Indian startup ecosystem. Their journey serves as an inspiration for aspiring entrepreneurs and highlights the potential that lies within India’s tech industry.
The Bigger Picture: Why the Zoho Mafia Matters
The rise of the Zoho Mafia is more than just a tale of entrepreneurial success; it’s a story about the ecosystem that fosters innovation and the importance of corporate culture in shaping future leaders.
Zoho’s approach to talent management—focusing on skills, promoting a culture of independence, and encouraging innovation—has clearly paid off, resulting in a wave of successful startups that are making significant contributions to the economy.
Moreover, the Zoho Mafia’s success is indicative of a broader trend in the Indian startup landscape, where homegrown talent is creating global impact.
This trend is likely to continue, fuelled by an increasing number of professionals gaining valuable experience at leading tech companies and then branching out to start their own ventures.
Credits
This comprehensive report was made possible by the collaborative efforts of Dinesh, Chethan HS, Rohini, Likith, and Anu at PrivateCircle.
Stay tuned for more updates and detailed analyses on the ever-evolving landscape of Indian startups!
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