Zoho data sovereignty: Bold Indian tech stand amid Arattai surge

Zoho data sovereignty has emerged as a cornerstone of the Chennai-based tech giant's philosophy, emphasising local control and security in an age of global data flows. As India's Digital Personal Data Protection Act 2023 tightens regulations, Zoho's approach—hosting Indian customer data exclusively within the country—positions it as a champion of national interests.

Founded in 1996 by Sridhar Vembu and Tony Thomas, Zoho now operates over 18 data centres worldwide, yet insists on jurisdictional hosting to comply with local laws. This commitment comes into sharp focus with the recent buzz around its messaging app Arattai, which has seen downloads surge 100-fold in just days, propelling it to the top of app stores.

Zoho's commitment to data sovereignty

Zoho's model stands out in a landscape dominated by US tech behemoths reliant on cloud services like AWS or Azure. As Vembu clarified in a post on X today, all Indian customer data resides in centres in Mumbai, Delhi, and Chennai, with Odisha soon to join.

The company owns its hardware and builds on open-source foundations such as Linux and Postgres, eschewing foreign cloud providers for core operations. This "Made in India, Made for the World" ethos extends to paying taxes in India on global income, a rarity among multinationals.

Recent partnerships underscore this focus: Zoho's collaboration with Dell and NVIDIA aims to deliver AI solutions while adhering to data sovereignty rules.

Plans for a UK data centre by 2026 reflect similar commitments abroad, amid 43% growth in that market.

For Indian users, this means sensitive information stays on home soil, aligning with growing concerns over data breaches and foreign surveillance—issues that plagued scandals like the 2022 HeadSpin fraud.

Introducing Arattai: India's homegrown messaging contender

Launched softly in January 2021 amid WhatsApp's privacy policy backlash, Arattai—meaning "chat" in Tamil—offers a familiar yet secure alternative to global apps.

Features include one-to-one and group chats, voice notes, image and video sharing, stories, channels, and voice/video calls. They are all multi-device supported and claim to be "spyware-free."

Unlike competitors, Arattai runs on Zoho's proprietary infrastructure, using external services only for traffic routing, not data storage.

The app's recent explosion—daily sign-ups jumping from 3,000 to 3,50,000—ties into India's Aatmanirbhar Bharat push for self-reliance.

Vembu has promised a major update by November, fine-tuning the app amid this unexpected traffic surge.

As India's Information Technology minister shifts to Zoho's tools, Arattai embodies a swadeshi spirit, appealing to users wary of data exports.  

Back in the spotlight: From Zoho Mail to modern messaging

Zoho first made waves with Zoho Mail in 2008, challenging Gmail with privacy-focused email for businesses. Seventeen years on, the company is back in headlines, driven by Arattai's viral growth and Vembu's vocal defence against misinformation.  

This resurgence coincides with broader trends: US H-1B visa fee hikes prompt Vembu to urge skilled Indians to return home, and Zoho's AI advancements emphasise privacy via do-it-yourself large language models.

In a nation where digital nationalism is rising, Zoho's narrative resonates— a bootstrapped success story from Chennai now serving millions globally, without venture capital crutches.

Can Arattai succeed where Elyments and Koo faltered?

Previous Indian apps like Elyments (launched 2020) and Koo (shut down 2024) offer cautionary tales. Elyments, backed by Art of Living, stumbled on technical glitches: OTP failures, app crashes, and poor user experience doomed its social networking ambitions.

Koo, a Twitter clone, raised funds prematurely without unique value. It suffers from performance issues, cluttered interfaces, and fierce competition.

Both lacked sustained innovation and broad appeal. Arattai, however, benefits from Zoho's established ecosystem, which integrates seamlessly with its suite of tools. It’s a free model, backed by efficient R&D to cut costs, and could sustain long-term growth.

With privacy as a differentiator and the current surge fuelled by data sovereignty debates, speculation leans positive. If Zoho leverages its 80+ country presenceresence and AI edge, Arattai might just carve a niche in India's 800-million-strong smartphone market. Yet, overcoming WhatsApp's network effects remains the ultimate test—could this be the moment desi tech truly takes flight?