Why Did Zoho's Arattai Fail? Lessons from the Decline of India's Homegrown Messaging App (2025)

Zoho's Arattai, once hailed as a homegrown alternative, is now struggling to stay afloat in the competitive messaging app market. This shift marks a significant challenge for Zoho, especially considering their ambition to rival giants like WhatsApp and Telegram. But what led to this decline? Let's dive in.

Arattai, meaning "chitchat" in Tamil, was designed to be a secure and feature-rich communication platform. Launched in early 2021, it aimed to capitalize on the growing demand for locally developed technology, particularly after the Indian Prime Minister's call for the adoption of "Aatmanirbhar Bharat" products in September 2025. The app initially gained traction, fueled by Zoho's employee base and a public eager to support domestic tech. It even briefly cracked the top ranks in the 'Social Networking' category, boasting over a quarter million users shortly after its debut.

However, the app's momentum has waned. According to recent Google Play listings, Arattai has dropped out of the top 100 apps. One of the main challenges for Arattai was its inability to build a critical mass of users. Unlike its competitors, which have had over a decade to solidify their user bases and network effects, Arattai faced the uphill battle of convincing users to persuade their entire social circles to switch platforms.

Arattai offered compelling features, including end-to-end encrypted voice and video calls, with user data stored entirely within India. But here's where it gets controversial: It reportedly lacked end-to-end encryption for text messaging, a feature that was still under development even after the app's initial launch.

Zoho is now reportedly focusing on integrating Arattai with its other business products, including the upcoming Zoho Pay app. This integration would allow for UPI payments directly within the chat window.

Neither Zoho nor its Chief Scientist, Sridhar Vembu, has publicly commented on the matter.

And this is the part most people miss: The app was first uploaded on November 4, 2025, at 4:46 PM.

What do you think? Do you believe that Arattai's focus on security and local development was enough to compete with established messaging apps? Or was the lack of key features, like end-to-end encrypted text messaging, a fatal flaw? Share your thoughts in the comments below!

Why Did Zoho's Arattai Fail? Lessons from the Decline of India's Homegrown Messaging App (2025)

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