Can India build $100 billion tech titans like China? Zoho's Sridhar Vembu on what won't get us there

Sridhar Vembu is the CEO of Zoho.

In a powerful call to action for India's tech industry, Zoho CEO Sridhar Vembu recently voiced his vision on Twitter for Indian companies to aim for sustainable, long-term growth rather than becoming preoccupied with short-term valuation goals. Highlighting the need for “$100 billion revenue” companies to drive India’s economic future, Vembu said that revenue—not valuation—should be the ultimate goal for Indian tech giants to lift millions out of poverty.

“Can we build $100 billion (revenue, not valuation!) tech companies from India? India needs a lot of them if we have to lift our people up,” Vembu wrote, citing China’s success in nurturing tech champions in the past two decades as an example. However, he warned that India’s tech ecosystem risks being derailed by an overemphasis on inflated valuations and stock bubbles, which he argued distract from true growth potential.

Vembu, 56, explained that companies fixated on valuation often lose focus on sustainable growth. “Stock bubbles actually distract us from the goal because the focus shifts to optimizing the valuation short term—and company managements start to obsess about getting the stock price up,” he said.

Instead, he advocated for businesses led by “visionary dreamers and builders” who aim to balance a long-term vision with the immediate need to pay the bills and sustain operations.

Vembu's comments reflect growing concerns among business leaders that the Indian startup ecosystem may be too fixated on rapid expansion and market valuations. Some observers have pointed to China’s success as an example, with one commenter noting, “China’s growth is rooted in wealth creation, not inflated valuations. They focus on sustainable businesses rather than chasing top-line numbers that never lead to a positive bottom line. Real growth needs solid fundamentals.”

Can we build $100 billion (revenue, not valuation!) tech companies from India?India needs a lot of them if we have to lift our people up. China has such world champions in plenty now, and they grew up in the last 20 years.I will tell you what won't get us there. What won't
Sridhar Vembu (@svembu) November 11, 2024

One user highlighted how short-term valuation could obscure a company’s true worth, remarking, “In good times, valuation outruns value and in bad times valuation trails value, but over the long-term, they converge.”

While critics argue that India lacks the financial and structural support that enabled Chinese giants like Alibaba and Tencent to reach global prominence, Vembu’s message resounds with those who see an opportunity to build resilient companies in India through discipline, strategic foresight, and unwavering commitment to core business fundamentals.