Home » Blog » Scaling with Purpose: Anand Nergunam on Zoho’s Growth Philosophy and MSME Transformation

In an era where many technology firms chase valuations and investor funding, Zoho Corporation has built a global presence while remaining bootstrapped. With a diverse product suite, a partner-first ecosystem, and a philosophy rooted in long-term value creation, Zoho has become a case study for sustainable growth.

In this conversation, Anand Nergunam, Vice President of Revenue Growth at Zoho, shares insights on building resilience, empowering MSMEs, and how consulting-led partners can co-create transformation. The dialogue also features reflections from Brydgework’s Founder, adding a practitioner’s lens to the discussion.

Q1. Zoho has scaled without external funding while building a diverse product suite. For MSMEs aiming to grow sustainably without heavy investor dependence, what elements of Zoho’s model can realistically be adapted?

Anand Nergunam:

From our perspective, the key is to identify the minimum value that any product should deliver so that it can start generating cash flow. That cash flow then becomes the fuel for further investment.

What often happens is that companies try to build everything into a product right from the start, which makes it unviable and pushes them to seek more capital for extensive R&D. Instead, start with the minimum functionality. It could be software, a bag, shoes, or any other product. As long as it is good enough to address a real need, it will generate some revenue. That revenue creates margins that can be reinvested back into improving and growing the product.

The second element is diversification. Zoho has always believed in building multiple products, rather than relying on a single one. This creates a two-level protection. For example, if demand in the CRM market slows down, revenue from our finance apps may rise and balance it out. Similarly, if one geography dips, like the US market, growth from another geography, such as Europe, can offset it. Both horizontally and geographically, we de-risk ourselves.

This strategy has consistently helped us sustain and grow without heavy external dependence.

Q2. Partner Ecosystem as Growth Engine. In your experience, how can consulting-led partners like Brydgework move beyond “selling software” to co-creating business transformation outcomes with Zoho, especially in markets where tech adoption is still reactive, not proactive?

Anand Nergunam:

The biggest opportunity lies in developing vertical-specific expertise. For example, if you ask Zoho how a building materials company should use CRM, we may not have the answer. Or if you ask how a shoe manufacturer should leverage Zoho Finance, again, we don’t have that industry-level depth.

But if a partner knows the unique conditions of a region and understands the challenges of that specific industry, they can create tailored solutions using the Zoho suite. That kind of vertical insight is something we will never fully have, because industries differ even across geographies. For instance, the way the footwear sector operates in Faridabad may be very different from how it functions in the Middle East or Africa.

These micro-markets require customization and localization that Zoho, as a global platform, cannot always deliver. This is where partners play a critical role. Your vertical-specific expertise and authority become your USP.

We always tell partners, pick industries where you have the strongest understanding and build depth there. When a partner has done multiple projects in the same industry, say speciality chemicals, the depth of knowledge they bring is something Zoho will never match.

So, our encouragement to partners is to build this kind of vertical expertise. It creates a big advantage for the partner, and for Zoho as well, because it allows us to serve micro-markets that we could never reach alone. Many of these markets are still at an early stage of tool adoption. Partners can help them adopt and apply Zoho effectively, and we will fully support you in that journey.

Q3. Lifetime Customer Value in MSME Context. Your work on enhancing Lifetime Customer Value focuses on cross-sell and up-sell. How do you see those strategies working when the client base has fragmented needs, unpredictable growth, and minimal IT budgets?

Anand Nergunam:

The way we see it, everything starts with the customer deriving tangible value from the first tool they adopt, for example, CRM. If they are able to get real value from CRM, the natural next step for them is to explore extensions such as marketing automation.

When a tool delivers measurable outcomes, customers begin to view it as a profit centre rather than a cost centre. For instance, if they invest fifty thousand rupees and see a return of seventy thousand rupees, there will be a shift in perception. The critical difference is whether they see those fifty thousand rupees as an expense or as an investment. And making them see it as an investment lies in the hands of the partner.

The partner’s role is to tailor the solution so that it directly impacts the customer’s growth, for example, their revenue increasing from X to Y due to CRM. Once that value is demonstrated, it becomes easier to introduce additional solutions such as marketing automation, customer support, or social media management.

In this way, the next sale is not seen as another cost item but as further value creation. That is the essence of cross-sell and up-sell in fragmented MSME markets, showing clear, incremental value at every stage so the customer sees each adoption as an investment, not an expense.

A Conversation on Customer-Centric Value

Founder (Brydgework):

We actually have a client who is a wedding event manager in Jammu and Kashmir. They started just a year ago, and within a short time they have adopted digital tools and are already seeing substantial benefits. Earlier they relied mostly on Instagram, but things would slip through the cracks. Now, with better tracking, they have been able to clock 30 to 40 lakhs of revenue in just two to three months.

We helped them in four ways: lead generation, lead nurturing, conversion, and post-conversion follow-up. That included converting happy clients into testimonials and promoting those back on social media. This constant cycle of lead generation and customer engagement has created strong value for them.

Anand Nergunam:

That is excellent. I would add that emotional value is equally important. When you build that into the client’s brand, the brand itself becomes stronger. The same principle applies whether it is a wedding planner or a footwear company. The real shift happens when you stop seeing yourself only as a technology partner. Of course, you may configure the CRM or another tool, but the deeper question is, do you truly understand the customer’s problems? Can you listen, learn, and add value beyond the software? That is where transformation begins.

Founder (Brydgework):

Exactly. In fact, this is something we consciously do with our clients. When a customer approaches us with a problem, for example lead generation, we do not take it at face value. Sometimes that is not even the real issue. We sit with them, analyse their system, and figure out whether the real gap lies in lead nurturing, follow-up, or something else. We do not want to just act as IT partners but as problem solvers.

Anand Nergunam:

That is exactly the right approach. A practical method is to run a workshop with the client’s key people. Spend a few hours together, map out all the issues on a board, and you will see different perspectives emerge.

It is like the parable of the blind men and the elephant; each person describes only one part. Nobody has the complete picture until you put it together. Once you create that unified picture with the client, you become their natural ally. They trust you. At that point, you can even say, You do not need a CRM right now; you need this.

That is when you move from being a vendor to being a trusted advisor. It is like a doctor treating a patient. The patient may complain of a headache, but the real cause may be deeper. If you only address the symptom, the problem persists. But if you identify and treat the source, you create lasting value.

Once you solve the first real problem, the customer does not need convincing for the next step. They will call you and ask for help with the next challenge. That is how partners evolve from just selling or configuring tools to becoming trusted, value-adding partners.

Q4. From your perspective, what are the top non-technical blockers to MSME digitization, such as leadership mindset, skills, or business model rigidity, and how can Zoho partners actively dismantle them?

Anand Nergunam:

We see the manufacturing sector as being significantly under-digitized. Take the footwear industry as an example. A manufacturer may be selling through 200 or even 500 distributor outlets, rather than their own stores. The real question is, how do you help those distributors go digital? Solving that challenge alone presents a huge opportunity in India’s manufacturing sector.

The second area with enormous potential is services. Consider home care, laundry, or wedding planning services. All of these businesses can create much greater customer value if they adopt digital tools such as CRM and marketing automation.

So, the opportunity lies both in component-based manufacturing industries and in service-oriented businesses. Each of these sectors can significantly enhance efficiency, customer engagement, and overall success through digitization.

As partners, your focus should be on enabling this transformation, helping these businesses adopt tools, overcome their inertia, and unlock new value.

Q5. Beyond adoption metrics, how does Zoho evaluate whether its technology is truly improving business resilience, workforce capabilities, or innovation cycles in client companies?

Anand Nergunam:

That is an excellent question. We look at it primarily through two metrics. The first is customer retention, how long a customer continues to stay with us. The second is the value addition we provide, which we measure through user growth. This includes both upgrades within a product and cross-sell across products.

For example, if a company is adding users, it is a strong indicator that they are deriving value. On the other hand, if they are downgrading users, that is a signal that we may not be adding enough value. Sometimes it reflects the customer’s own business challenges, but we still consider ourselves part of that ecosystem. If they are not generating or converting more leads, it also means we are not helping them enough.

So, user additions and cross-sell are two powerful indicators for us to assess whether we are truly adding value. Beyond these, we also look at broader value-based outcomes. For instance, when you referred earlier to Zoho opening schools and operating offices in villages, those initiatives demonstrate the kind of impact we want to create.

It is not only about technology adoption, but about enabling resilience, skills, and long-term growth in the communities we serve.

Closing Note

Zoho’s story offers powerful lessons for MSMEs and partners alike. Start small, but build for value. Diversify to de-risk. Focus on industry-specific expertise. And above all, position yourself not as a software vendor, but as a trusted ally who understands and solves real business problems. As Anand Nergunam highlights, the future of business transformation lies not just in technology adoption, but in the ability to build trust, deliver tangible outcomes, and create ecosystems of resilience and growth.

Brydgework Consultants as a Zoho affiliate

Brydgework Consultants has joined hands with Zoho as an affiliate partner to make world-class business tools accessible to small and medium enterprises across India. The idea is simple yet powerful: help businesses, especially in Tier 2 and Tier 3 cities, use Zoho’s affordable and reliable software to grow faster and smarter.

With this collaboration, Brydgework will guide businesses in adopting Zoho’s tools to streamline their operations, cut down on repetitive tasks, and build systems that support long-term, sustainable growth. By making these technologies part of everyday business, Brydgework aims to give MSMEs the confidence and capability to compete not just locally, but globally.

Get started with Zoho through Brydgework Consultants and enjoy a $100 credit on your purchase. As an affiliate partner, we’ll help you choose the right Zoho tools for your business and guide you in setting them up for maximum impact. Reach out and take your first step toward smarter, faster, and more sustainable growth.

More than just providing software, Brydgework focuses on offering personalised advice and on-ground support so that each business can get the most out of Zoho. Together, Brydgework and Zoho are working to reshape the future of small businesses in India, where technology meets sustainability, and growth is truly inclusive.