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Zoho Founder Sridhar Vembu Steps Down As CEO, Transitions To Chief Scientist Role, Shifts Focus To R&D And Innovation

Vembu steps down as CEO at Zoho Corporation to assume the position of Chief Scientist, focussing on research and innovation.

Sridhar Vembu, the founder of Zoho Corporation, has stepped down from his role as CEO to assume the position of Chief Scientist, where he will concentrate on research and innovation, particularly in artificial intelligence and deep technology.

The announcement was made on 27 January 2025 via a post on his X handle, where Vembu stated, A new chapter begins today. In view of the various challenges and opportunities facing us, including recent major developments in AI, it has been decided that it is best that I should focus full time on R&D initiatives, along with pursuing my personal rural development mission. I will step down as CEO of Zoho Corp and take a new role as Chief Scientist, responsible for deep R&D initiatives. Our co-founder Shailesh Kumar Davey will serve as our new group CEO. Our co-founder Tony Thomas will lead Zoho US. Rajesh Ganesan will lead our ManageEngine division and Mani Vembu will lead the Zoho.com division. The future of our company entirely depends on how well we navigate the R&D challenge and I am looking forward to my new assignment with energy and vigor. I am also very happy to get back to hands on technical work.”

In his new role, Vembu aims to explore transformative technologies, emphasizing the importance of research and development in shaping Zoho’s future. He has consistently highlighted his interest in areas such as AI, distributed systems, and cloud technology as critical for building next-generation solutions. This shift aligns with Zoho’s vision of advancing in sectors like software, semiconductors, and e-commerce.

Shailesh Kumar Davey, a co-founder of Zoho, has been named the new CEO. Other leadership changes include Tony Thomas heading Zoho US, Rajesh Ganesan leading the ManageEngine division, and Mani Vembu overseeing the Zoho.com division.

Vembu, recognized as one of India’s most influential tech entrepreneurs, played a pivotal role in transforming Zoho into a $1 billion bootstrapped enterprise with over 80 million users worldwide. The company reported revenues exceeding ₹8,000 crores and a profit of ₹2,800 crores for FY23.

In an earlier interview, Vembu spoke about the company’s growth strategy, which involves integrating advanced technologies to create seamless solutions. He cited the example of Cliq Rooms, where smart TVs, phones, and cloud technologies are integrated to deliver a cohesive experience.

Apart from his technological contributions, Vembu is known for his focus on sustainable development and the rural economy. He has been actively involved in rural development projects and also supports a school for children in Tamil Nadu. Additionally, Zoho operates its in-house Zoho University, which trains and employs students directly out of school.

The leadership transition marks a significant milestone for Zoho Corporation. With Vembu dedicating his efforts to deep R&D and the newly appointed CEO taking the helm, the company is poised to navigate the challenges and opportunities presented by advancements in AI and other emerging technologies.

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