Zoho to invest Rs 1,105 crore for Saudi Arabia's digital infra development

Zoho CEO Sridhar Vembu (Image credit: @svembu/X)

Software-as-a-Service unicorn Zoho on March 5 announced investing close to Rs 1,100 crore (SAR 500 million) for Saudi Arabia's digital infrastructure development and strategic partnerships with local government entities contributing to the Saudi Vision 2030.

The firm also opened two new data centres in the country in a move to ensure local data is stored within the geographical boundaries of the Kingdom, in line with Personal Data Protection Laws (PDPL).

“Zoho Corporation has a strong R&D foundation, as we have invested in building our full technology stack, including the data centres that are run using our proprietary patented technology," said Sridhar Vembu, CEO and Co-founder of Zoho Corp.

Big News: @svembu, our CEO, has proudly launched our data center in Saudi Arabia, marking it live! This milestone reflects our deep commitment to ensuring data security, sovereignty, and top-notch service in the region. @hyther @prem_anandv @shabdar pic.twitter.com/AVs4VgbyQf

— Zoho Middle East & North Africa (@ZohoMENA) March 4, 2024

" Located in Jeddah and Riyadh, the two data centres are now fully operational...Zoho Corp. is a leading global technology company that encompasses prominent brands such as Zoho and ManageEngine," the firm said in a statement.

In addition to Rs 1,105 crore, Zoho Corp has also allocated Rs 221 crore for SMEs in Saudi Arabia wherein the company's can utilise the amount in wallet credits yearly for the next 10 years, to access to any of its 55+ cloud-based applications under the Zoho brand and for training.

"These partnerships will help ease the adoption of digital technologies for SMEs in Saudi Arabia and promote digital upskilling amongst local businesses," the firm said in a statement.

Zoho on February 1 reported 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, showed RoC filings sourced from data and research firm Private Circle.