Bootstrapped firms Zoho Corporation and Zerodha have emerged as two of the most valued unlisted companies in India, according to the 2024 Burgundy Private Hurun India 500 report which was released on February 19. The report highlights the significant growth of the two companies amid a dynamic economic landscape both for the software and the stock broking industry.
Chennai-based SaaS giant Zoho Corporation secured the third spot with a valuation of Rs 1.04 lakh crore, marking a 58 percent increase from the previous year. Zoho has steadily expanded its footprint in enterprise software, leveraging its bootstrapped model to maintain independence while competing with global SaaS leaders.
Meanwhile, Bengaluru-based brokerage firm Zerodha ranked fourth with a Rs 87,750 crore valuation, marking a 50 percent rise year-over-year. Led by Nithin Kamath, Zerodha has revolutionized retail investing in India, benefiting from the surge in stock market participation.
Also read: Reliance Industries is India's most valuable company in Burgundy Private-Hurun India report
FY24 was a significant year for both Zerodha and Zoho in terms of record revenue numbers. In FY24, Zerodha's net profit was up 89 per cent to Rs 5,496 crore from Rs 2,908 crore last fiscal year. Revenue from operations rose by 37.16 per cent to Rs 9,372 crore in FY24, compared to Rs 6,832 crore in FY23.
Similarly, Zoho reported a consolidated revenue of Rs 8,703 crore in the financial year 2023 (FY23), up nearly 30 percent year-on-year despite an overall slowdown in demand for the software industry across the globe. Zoho's consolidated net profit came at Rs 2,836 crore which rose marginally at 3 percent year-on-year on account of a rise in expenses.
Zoho's valuation surge follows a significant leadership reshuffle within the company. Founder and longtime CEO Sridhar Vembu stepped down from his executive role to take on the position of chief scientist, where he will focus on research and innovation, particularly in artificial intelligence and deep tech.
The National Stock Exchange of India (NSE) dethroned the Serum Institute of India as the most valuable unlisted company, with a 201 percent jump in valuation to Rs 4.7 lakh crore. Despite losing the top spot, Serum Institute, led by Cyrus Poonawalla, clocked a valuation of Rs 2.12 lakh crore.
Other unlisted companies in the top 10 list in terms of valuation included Megha Engineering & Infrastructures, Parle Products, Intas Pharmaceuticals, Dream11, Razorpay and Amalgamations.
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