Cloud services company Zoho Corp has reportedly invested about $10 Mn in 5 startups. Zentron Labs and vTitan, a medical device maker are 2 of the chosen investments while the other 3 three startups’ names remain undisclosed.
The raised capital will be used by the 5 startups for their research and development phase.
Founded in 1996 by Sridhar Vembu, Zoho provides software to solve the issues related to CRM, business tools etc. With over 20 million users worldwide, Zoho’s 33+ products helps businesses in their sales and marketing, support and collaboration, finance and recruitment needs.
Sridhar, founder of Zoho said, “We are investing in companies that think like Zoho. We are not venture capitalists and exits are not what we are looking for through these investments.“
Zoho is scouting to acquire small technology startups in AI and data analytics, among other businesses. However, Vembu said, his company is not in a hurry and will only go ahead with the acquisition once the right fit comes along.
“We talk to a lot of entrepreneurs but what makes the cut for Zoho is the acquisition needs to be tucked in to integrate into our product portfolio and we find a cultural fit in the entrepreneur,“ said Vembu. “Entrepreneurs who solely build a product startup with an intention of exit will not fit in Zoho culture.“
In August last year, the company had launched Zoho Developer programme and Zoho Marketplace, to provide independent software vendors (ISVs) and application developers the tools and resources to create extensions and build custom applications.