Global technology company Zoho Corporation on Monday (October 2) issued a cautionary statement about a potential global economic downturn.
"We saw a fairly pronounced slowdown in growth in September across countries and across products. Given the geographically and product-wise diversified nature of our revenue streams, I suspect the global economy is taking a turn for the worse. Caution ahead," Sridhar Vembu, the CEO of Zoho Corporation, tweeted today.
Vembu's warning comes in response to a noticeable slowdown in growth experienced by Zoho in the month of September, affecting various countries and a spectrum of products offered by the company.
Last month. Chennai-based Zoho surpassed 100 million million users across over 55 business applications. The landmark comes less than a year since the company announced, in November, that achieved $1 billion in revenue.
The last few years have seen Zoho Corp register prolific growth on the sales and user-count front. For context, it surpassed the 1 million user-count mark in 2008. Its last 50 million users were on-boarded in only the last five years.
The company has also made rapid strides in the enterprise, or the "upmarket" segment, in India, with a 3-year CAGR of 65 percent. Zoho supports over 7 lakh businesses across more than 150 countries, with India continuing to be one of the fastest-growing among the lot.
In March this year, a new report from the World Bank warned that the global economy’s “speed limit” — the maximum rate of long-term growth without causing inflation — is set to decline to its lowest point in three decades by 2030.
The report, titled ‘Falling Long-Term Growth Prospects: Trends, Expectations, and Policies,’ provides an extensive evaluation of potential output growth rates in the aftermath of two significant global events — the COVID-19 pandemic and the Russian invasion of Ukraine.
It presents a troubling observation — nearly all of the economic forces that have driven progress and prosperity in the past three decades are diminishing.
