Particle.news

Zoho’s Arattai Soars to No. 1 as Daily Sign-Ups Hit 350,000, Forcing Rapid Scale-Up

The company is expanding India-based capacity, including a planned Odisha data centre, to stabilise onboarding.

Overview

  • Downloads and daily sign-ups jumped about 100x in late September, propelled by endorsements from Union ministers and high-profile supporters, pushing Arattai to the top of app-store social charts.
  • Zoho says the surge exposed onboarding glitches such as delayed OTPs and slow contact syncing, and it is adding servers on an emergency basis to prepare for further spikes.
  • Sridhar Vembu reiterated that Arattai data for Indian users is hosted domestically on Zoho-owned hardware in centres across Mumbai, Delhi and Chennai, with a new facility planned in Odisha.
  • End-to-end encryption is live for calls while chat encryption is still in development, underscoring a key security gap compared with WhatsApp’s fully E2EE messaging.
  • Vembu says Zoho has opened talks with iSpirt to publish interoperable messaging protocols inspired by UPI, as analysts warn that overcoming network effects and improving retention will determine long-term traction.