Sridhar Vembu Responds to Arattai’s Ranking Drop: “We’re Building for the Long Term, Not Chasing Hype”

Zoho founder Sridhar Vembu has addressed the recent decline of the company’s messaging app Arattai from the top 100 charts on Google Play Store and Apple App Store. In a recent interview with a popular publication, Vembu stated that the app’s ranking drop is a routine part of a product’s evolution and not a sign of trouble.

“There’s nothing going wrong. I think, first of all, the idea that something went wrong is what is wrong. It is a normal course of events. Nothing goes straight to the moon. You have to go through these ups and downs,” Vembu said, underscoring the importance of patience and steady progress in building sustainable technology.

The Zoho chief stressed that his company is focused on long-term innovation rather than chasing fleeting market trends or vanity metrics. “I really don’t care to operate in a pure hype environment. We are here to produce really long-term technology,” he remarked.

Vembu highlighted that app-store spikes often represent momentary excitement rather than enduring success. “The trick to companies that survive is they have a long-term view on this. In fact, I never thought the number one spot was anything big. I literally told our employees, this is a particular moment, it won’t last,” he explained, adding that the company is committed to continuous product improvement instead of celebrating temporary milestones.

Beyond Arattai’s performance, Vembu also discussed Zoho’s broader vision and its contribution to India’s technological ecosystem. While around 90 percent of Zoho’s revenue currently comes from outside India, he emphasised the importance of developing homegrown innovation to strengthen the country’s economy. “If we want to become a higher-income economy we have to focus on value addition. That means inventing all of this technology,” he said, urging India to move up the value chain through indigenous R&D.

Speaking about the competitive landscape in messaging apps, Vembu expressed support for opening existing ecosystems to third-party developers, saying such moves would foster fair competition and curb monopolistic behaviour. “If we open up existing ecosystems for a lot of apps to play, that itself is a valuable service,” he noted.

Addressing privacy concerns, Vembu confirmed that Arattai will soon roll out device-based encryption, ensuring data security while maintaining reliable backups. He explained that the company is taking a phased approach to implementing end-to-end encryption, balancing security with usability.

On the topic of layoffs in big tech, Vembu took a firm stance against routine job cuts, emphasising the need for mutual loyalty between employers and employees. “The fundamental question facing companies is whether we can expect loyalty and commitment from employees if employers do not first show commitment and loyalty in return,” he concluded.

Through his remarks, Vembu reaffirmed Zoho’s long-term philosophy—to build resilient, innovative, and ethical technology rooted in enduring values rather than short-term hype or market trends.