In a surprising move, Sridhar Vembu, co-founder and CEO of the SaaS unicorn Zoho, has announced the launch of his new venture, Karuvi, a power tools manufacturing company based in Chennai. The revelation of this new endeavor came through a post by Vembu on X, where he shared insights into the genesis and vision of Karuvi.
According to its website, Karuvi is a mechatronics startup specializing in the design and production of consumer and industrial power tools and mechanical systems. The name “Karuvi” draws inspiration from the Tamil word for instrument or tool, reflecting the company’s roots and purpose.
Vembu revealed that the idea for Karuvi took shape nearly two years ago, driven by a desire to explore new horizons beyond Zoho’s core business. He explained, “Being crazy, we… set up a small engineering team. A lot of designs and redesigns later, we have a suite of tools ready to start commercial production.”
While the exact relationship between Karuvi and Zoho remains unclear, Vembu disclosed plans to establish a manufacturing facility for Karuvi in Tenkasi, the headquarters of Zoho. The initial product lineup of Karuvi includes angle grinders, corded and cordless drills, rotary hammers, saws, among other power tools, with future expansion into batteries, hand tools, and accessories.
Emphasizing Karuvi’s commitment to precision and technological innovation, Vembu outlined the company’s strategy to collaborate with professionals and authorized dealers to penetrate the tech-enabled power tool industry.
The genesis of Karuvi stemmed from a conversation with Abdul Gafoor, founder of UAE-based home appliances company Mr Light Global, who envisioned Zoho manufacturing handheld tools. Vembu recounted, “He told me he wanted Zoho to make these products and he would love to distribute them. I said we know nothing about it. He said this could create rural jobs. That is how he hooked me!”
Responding to inquiries about Karuvi’s operational aspects, Vembu revealed that the startup began with just two engineers and has now grown to a team of 10 employees. He acknowledged the significant costs involved in prototyping, tooling, factory setup, machinery, marketing, distribution, and consumer support, projecting expenses to be “double” initial estimations.
Karuvi’s launch marks a departure from Zoho’s traditional enterprise tech focus, signaling the company’s foray into uncharted territory. This strategic move coincides with Zoho’s recent initiatives to diversify its offerings, including the introduction of Zakya for retail businesses and privacy-focused browser Ulaa, alongside Zoho Practice tailored for chartered accountants.
The timing of Karuvi’s launch aligns with Zoho’s robust financial performance, with operating revenue reaching INR 8,703.6 crores ($1 billion) in FY23, reflecting a 30% year-on-year increase. While Zoho’s net profit witnessed a modest 3% rise to INR 2,836 crores in the same period, Karuvi’s entry into the market represents a bold step towards exploring new avenues of growth and innovation for the Chennai-based tech giant.
