In his post, he said that as a CEO of a public company, he couldn’t live in a remote village and focus on his own high-tech projects while also managing the school, farm, and rural tasks. The pressure of handling the company’s stock price would be intense, and he’d have to pass that pressure on to everyone else in the company.
Sridhar Vembu, CEO of Zoho Corporation, explained that leading a public company is significantly more challenging than leading a private one. He likened it to constantly being on a treadmill, as stated in a post on X (formerly Twitter).
In a private company, Vembu noted, they can invest in long-term research and development and infrastructure without the pressure of meeting quarterly financial targets.
He also expressed personal concerns about the demands of being a CEO of a public company, mentioning that it would be difficult to pursue personal projects while managing the pressure of stock prices, which would ultimately affect the entire company’s well-being.
The decision to remain private, Vembu emphasized, allows them to focus on long-term projects with their team.
The post received significant attention, with many users agreeing with Vembu’s perspective, while others highlighted the regulatory challenges associated with going public.
When asked about maintaining growth without overwhelming employees or management, Vembu explained that they prioritize sustainable growth and promote employees accordingly, without pushing them to the point of burnout—a balance that’s easier to maintain as a private company.
Zoho FY23 results
In FY23, Zoho, a Software-as-a-Service (SaaS) provider, saw its net profit rise by 3 percent to Rs 2,836 crore, compared to Rs 2,749 crore in FY22. Its revenue increased by 30 percent from Rs 6,710.8 crore to Rs 8,703 crore, based on filings with the RoC and data from Tofler. Despite macroeconomic uncertainties affecting IT services and products demand, Zoho experienced growth. Specifically, its enterprise IT management division, Manage Engine, reported a revenue of Rs 4,327.8 crore for FY23, marking a 37 percent increase over FY22.
