Zoho has been immensely helpful for us; it's a role model for startups in Tamil Nadu, with its growth being widely admired. We aspire to build a sustainable and ethical startup, following in Zoho's footsteps.

Zaaroz: Delivering success in Tier 2 & 3 markets with Zoho

The company

Ram Prasath, CEO and co-founder of Zaaroz, along with CIO and co-founder Jayasimhan Vijayaraghavan, embarked on a mission to bring hyperlocal delivery to the underserved Tier 2, Tier 3, and Tier 4 markets in India. Starting in their hometown of Chidambaram in 2018, Zaaroz quickly gained traction. The COVID-19 pandemic further accelerated their growth, expanding to 55 locations with plans to cover all of Tamil Nadu and beyond.

The challenge: Scaling operations and streamlining finances

As a tech-driven company, Zaaroz built its own operational platform. However, managing the financial complexities of high-volume transactions, cash-on-delivery (COD) deposits from 600+ riders, and expanding B2B operations required a robust and scalable accounting solution.

After initially using QuickBooks, Zaaroz faced a hurdle when QuickBooks ceased operations in India. They needed a cloud-based alternative that could handle their current needs and support future expansion.

The solution: A seamless transition to Zoho

With their strong IT background, Prasath and Vijayaraghavan immediately recognized Zoho as the ideal choice. Prasath noted that for cloud-based accounting software in India, Zoho Books was their immediate first choice, as it was well-known both domestically and globally. They partnered with Vishesh Unni Raghunathan from Fat Rhino Technologies, a Zoho partner, who guided them through the migration.

The migration from QuickBooks to Zoho Books, involving over 100,000 invoices and extensive banking transactions, was remarkably smooth. Zoho’s migration tool and clear API documentation were instrumental. Raghunathan highlighted that Zoho’s API documentation was exceptionally clear, making transaction completion straightforward, enabling Zaaroz to integrate their existing middleware with Zoho’s API in just two weeks.

Key Zoho integrations and benefits for Zaaroz

• Automated invoice flow: 100–400 invoices daily flow seamlessly from Zaaroz’ operational platform to Zoho Books via API, ensuring accuracy and eliminating manual entry.

• Real-time banking integration: Zoho’s direct integration with ICICI Bank automatically synchronizes daily transactions and deposits from their 600+ riders. Auto-categorization rules significantly reduce reconciliation time.

• Streamlined payments: Zaaroz can process supplier payments directly from Zoho Books through the ICICI integration, eliminating the need to log into net banking and thereby saving substantial time.

• Comprehensive inventory management: For their B2B vertical, Zaaroz adopted Zoho Inventory to manage 600+ SKUs across 15+ warehouses. The bundling option, valuation reports, and stock reports are crucial for efficient warehouse management.

• Centralized control and scalability: With Zoho, Zaaroz operates with only one chief accountant for all 55 locations, a testament to the platform’s efficiency. The scalability of Zoho Books and Inventory provides confidence for their Pan-India expansion plans.

• Holistic Zoho ecosystem: Beyond Books and Inventory, Zaaroz has embraced Zoho Payroll, Zoho Sign, and Zoho Contracts, with plans to explore more Zoho applications for further automation and process optimization.

Benefits and ROI: Efficiency, scalability, and strategic growth

The implementation of Zoho has been transformative for Zaaroz.

• Significant time and cost savings: Automated processes, particularly banking integration and reconciliation, have drastically reduced manual effort, allowing a lean finance team to manage high transaction volumes.

• Improved accuracy and data integrity: API integrations ensure precise data flow, eliminating errors and data gaps, which are crucial for financial reporting and auditing.

• Enhanced operational efficiency: Zoho Inventory empowers Zaaroz to manage multiple warehouses effectively, track stock, and streamline their distribution model, including supporting upcoming manufacturers as a super stockist.

• Foundation for future growth: The robust and scalable nature of Zoho’s suite provides Zaaroz with the confidence to expand to new locations and states, handling increasing transaction volumes easily.

• Strategic decision-making: With real-time financial data readily available, Prasath can make informed decisions to drive Zaaroz’ rapid expansion.

Looking ahead

Zaaroz aims to cover all of Tamil Nadu’s Tier 2, 3, and 4 markets by the end of the 2025 financial year, reaching over 100 locations, followed by expansion into Kerala, Andhra Pradesh, Telangana, and Karnataka. With Zoho’s comprehensive suite supporting their financial and operational backbone, Zaaroz is well-positioned to achieve its vision of serving the untapped and underserved markets across South India.