Zoho Nigeria saw its growth slow to 74.28% in 2024, down from 83.68% in 2023. This was announced by Kehinde Ogundare, Country Head, Zoho Nigeria, at the Zoholics Conference press briefing held by the company on Monday, 8th September.
“Customer growth in Nigeria grew by 74.28% in one year. In the new age of technology, when a lot of companies are complaining about the cost of technology, acquisition costs, and onboarding, we have been able to maintain a steady growth in the market.”
While a 74% growth rate is still significant, it is a decline from the 83.68% achieved in 2023. The decline suggests that although Zoho continues to attract new customers and expand its presence, the pace at which it is adding users has slowed. Nevertheless, it is notably stronger than the 50% growth achieved in 2022.
In late 2024, the company increased its prices in Nigeria due to the Naira devaluation. Ogundare argued that the slowed growth was not a result of the price increase.
“It is not because of the price adjustment. Because, even right now, what we sell to the Nigerian customer is heavily discounted.”
Zoho’s primary competitive advantage has been its lower pricing, coupled with the fact that it bills Nigerian companies in local currency, unlike its competitors, which bill in dollars. This ensures that businesses are not adversely affected by currency fluctuations and has made it a popular choice for price-sensitive businesses. However, larger organisations like banks and government agencies continue to favour these pricier alternatives.
Crucially, the Naira — whose devaluation partially brought it into the limelight — stabilised in 2024 and possibly contributed to a slower growth rate compared to 2023.
Consequently, this means that its advantage cannot remain hinged on pricing. It must create innovative solutions that differentiate it from competitors. Right now, it offers businesses a wider range of tools — over 55 business tools compared to Google’s 14 core business tools and Microsoft’s over 20.
