Zoho, Perplexity, and the Hype Around Big Valuations: Let’s Look Closer

Let’s Look Closer

Tech companies like Zoho and Perplexity are grabbing headlines with massive valuations and bold moves. But do these numbers make sense? Let’s break it down and ask some practical questions about the hype.

Big Claims, Big Questions

News outlets are buzzing about huge figures—like Zoho’s billion-dollar valuation or Perplexity’s CEO reportedly offering $34.5 billion to buy Chrome. These sound impressive, but let’s look closer.

- Perplexity’s Chrome Offer: Perplexity, an AI search startup, made an unsolicited $34.5 billion all-cash offer to buy Google’s Chrome browser, according to CNBC and The Wall Street Journal. Perplexity was valued at $18 billion in July 2025 after raising $100 million, with total funding of about $1.5 billion (Bloomberg, PitchBook). That’s nowhere near $34.5 billion in cash. The company claims venture investors, including large funds, are backing the deal, but they haven’t named them. Could Perplexity secure that kind of financing? It’s possible but ambitious—startups rarely have the revenue or assets to support such massive loans. Is this a strategic move to gain attention or align with the U.S. Department of Justice’s push to force Google to sell Chrome after an antitrust ruling? Without transparent financials, it’s hard to know.

- Zoho’s Valuation: Zoho, a Chennai-based software company, is privately held, so exact financials are scarce. Forbes estimated its valuation at around $2 billion in 2020. Zoho’s growth comes from its business software, used globally by companies of all sizes. But India’s economy faces challenges—unemployment was 7.8% in 2023 (CMIE), and inflation hit 6.2% in 2024 (RBI). With many Indian businesses and consumers struggling, is Zoho’s valuation driven by real demand or investor optimism? Its global customer base likely plays a bigger role, but without public financials, the $2 billion figure is more of an educated guess than a hard fact.

Why the Hype?

Media outlets love big numbers—they drive clicks and ad revenue. When a CEO makes a bold claim like Perplexity’s Chrome bid, journalists often amplify it without digging into the company’s balance sheet. Each headline makes the story feel more legit, even if the details are unclear.

Think Before You Buy the Hype

Valuations and blockbuster deals sound exciting, but here’s what to keep in mind:

- Valuations Aren’t Cash: A $1 billion valuation doesn’t mean a company has $1 billion. Many “unicorns” lose money while investors bet on future profits.

- Big Offers Need Proof: A $34.5 billion bid sounds bold, but without clear funding details, it’s just a proposal. Perplexity’s promise to invest $3 billion in Chrome’s open-source engine, Chromium, and keep Google as the default search engine adds intrigue, but can they deliver?[](https://finance.yahoo.com/news/perplexity-offers-buy-chrome-billions-171408141.html)

- India’s Tech Growth Has Limits: Indian tech is booming, but economic challenges like unemployment and inflation mean not every company’s success translates to widespread prosperity.

Questions to Ask

Before you believe the next big tech story, ask:

- Are there public financial reports to support the claims?

- Who benefits from the hype—CEOs, investors, or media?

- Could there be other motives, like attracting investors or influencing legal outcomes?

The Bottom Line

Zoho and Perplexity are innovative, but not every headline tells the whole story. Perplexity’s $34.5 billion Chrome bid may be a clever move to capitalize on Google’s antitrust woes, but its feasibility is questionable without clear funding. Zoho’s valuation reflects its global reach, but India’s economic realities raise questions about sustainability. In a world where news outpaces facts, pause and think—because the truth is often less shiny than the headline.