Business

Can Arattai Overcome Network Effects to Challenge WhatsApp and Telegram's Dominance?

Arattai is a messaging app created by Zoho Corporation and was launched in 2021

Pardeep Sharma

Messaging apps are among the strongest examples of how network effects work. The more people who use a messaging platform, the more valuable it becomes for every individual. Users are drawn to these apps because their friends, families, and workplaces are already on them. Even if a new app offers more features or better security, convincing people to move away from their existing networks is extremely hard. The switching cost is not just about downloading a new app, but about losing the seamless access to the people one talks to most often. 

This is the wall that keeps WhatsApp and Telegram strong. Both have massive user bases and are deeply integrated into daily life. For a new entrant like Arattai, the challenge is not only to match features but to break into this social network and create its own pull. The question is whether Arattai has the ability to build enough momentum to challenge this dominance. 

Arattai: The New Contender 

Arattai is a messaging app created by Zoho Corporation and was launched in 2021. It presents itself as a simple, secure, and Indian-made platform. Unlike global rivals that depend on large cloud providers like Amazon or Google, Arattai runs on Zoho’s own hardware and infrastructure. The app offers text messaging, group chats, voice and video calls, and the ability to log in from multiple devices. It also allows users to import data from other apps, making the transition easier. 

Recently, Arattai has experienced a sharp rise in popularity. Daily sign-ups jumped from about three thousand to around three hundred and fifty thousand in a very short span of time. This is almost a hundred times more traffic than before. For a period, Arattai even climbed to the top of app store rankings in India, surpassing WhatsApp and Telegram in the social networking category. Such sudden momentum shows that there is genuine curiosity and demand for a homegrown alternative. 

Political leaders have also endorsed the app. Union Education Minister Dharmendra Pradhan publicly encouraged citizens to try Arattai, calling it secure, user-friendly, and completely free. The nationalistic narrative of “Made in India” has given Arattai an advantage in visibility, especially at a time when data sovereignty and digital independence are hot topics. Zoho’s founder Sridhar Vembu has also stressed that the app is designed to work even on low-end mobile phones, which is crucial in a country where millions still use budget devices. 

WhatsApp and Telegram: The Giants of Messaging 

The scale of WhatsApp and Telegram shows why Arattai faces such a steep climb. WhatsApp is still the most widely used messaging app in the world. As of 2025, it has more than 3.1 billion monthly active users and about 2.3 billion daily active users. India alone has over 535 million WhatsApp users, making it the platform’s largest market globally. Studies show that around 84 percent of messaging app users in India still prefer WhatsApp, which translates to about 81 percent of social media users in the country. 

Telegram is the second strongest player in India. Around 56.9 percent of Indian social media users are on Telegram, and the country makes up more than 20 percent of Telegram’s global user base. India also leads in app downloads for Telegram, with more than 104 million installs. Globally, Telegram now has about one billion monthly active users and gains around 2.5 million new users every day. While WhatsApp dominates private and personal messaging, Telegram has carved out its space with public channels, broadcasting features, bots, and the ability to host massive groups. 

Together, these two platforms dominate both sides of the communication market. WhatsApp rules personal conversations, and Telegram excels at large-scale content sharing. For Arattai to break in, it must find a unique angle that challenges one or both of these use cases. 

What Works in Arattai’s Favor 

Arattai is not without strengths. One of its biggest advantages is the strong national identity it carries. The app is marketed as a product of India, built on Indian infrastructure, and not dependent on foreign companies. This aligns with the government’s push for digital sovereignty and has already won Arattai some official support. 

The app also stresses privacy. By hosting data in India on its own servers, it tries to differentiate itself from global rivals whose storage practices are often questioned. In addition, Arattai has rolled out features that are slightly different from standard messaging. For example, “Arattai Meetings” allow scheduling and recording of calls, and “Arattai Pocket” serves as a personal note-taking and storage feature. These tools could appeal to small businesses and professional users who want more than just casual messaging. 

Another big strength is its performance on low-end devices. Since a large number of Indian users still use basic smartphones, having an app that runs smoothly without slowing down the device can become a deciding factor. This accessibility widens Arattai’s potential audience significantly. 

Finally, the recent surge in downloads shows that the market is open to testing new alternatives. The ability to import chats and data from other apps also lowers the barrier to switching, giving Arattai a small but important advantage. 

The Challenges Ahead 

However, the path is far from easy. The biggest challenge for Arattai is not getting people to download the app, but making them stay. Messaging apps succeed only when people actively use them every day. It is easy to sign up out of curiosity or patriotism, but harder to abandon WhatsApp or Telegram, where all personal and professional contacts still remain. If Arattai cannot convert downloads into daily active users, its growth will plateau. 

There are also concerns about its security. While Arattai says calls are end-to-end encrypted, some experts point out that its encryption for chats may not yet be fully at par with global standards. Any weakness in privacy or data protection could erode trust, especially among early adopters who are choosing the app for security reasons. 

Another issue is the lack of a broad ecosystem. WhatsApp has WhatsApp Business and payment features. Telegram has bots, large communities, and a strong developer base. Arattai, in comparison, is still thin. To compete seriously, it needs to open up to developers, create integrations, and become more than just a place to chat. 

Finally, sustaining a messaging app at scale requires enormous investment. Billions of messages, calls, and media files need servers, bandwidth, and constant upgrades. Without a clear business model for revenue, there is a risk that Arattai may struggle to maintain long-term infrastructure while remaining free for users. 

Possible Strategies for Success 

To have a real chance at breaking through, Arattai needs to focus on building strong user clusters rather than chasing mass adoption immediately. If schools, offices, or government departments start using Arattai for internal communication, entire networks can form within the app. This clustered adoption could then expand into wider society. 

Zoho’s strength lies in enterprise software, and this could be leveraged. By connecting Arattai with Zoho’s existing business tools, the app can position itself as a serious communication platform for professionals and organizations. This would also give it a revenue model through premium features. 

Arattai should also work towards building a developer ecosystem. Allowing bots, APIs, and third-party plugins will give it a richer environment and help it match Telegram’s flexibility. Ensuring trust through open audits and clear encryption practices will also be essential to win skeptical users. 

Localization is another route. If Arattai emphasizes Indian languages, cultural content, and local integrations, it could carve out a distinct identity. The combination of national pride, practical features, and strong performance could give it an edge in specific communities. 

 Final Thoughts 

Arattai’s sudden rise shows that there is real demand for a homegrown messaging platform. It has already proven that curiosity and patriotic appeal can bring in hundreds of thousands of users quickly. But the bigger challenge is to keep these users engaged and to slowly grow its network into something self-sustaining. 

WhatsApp and Telegram still dominate, with billions of users globally and hundreds of millions in India. Their network effects are powerful, and breaking them will take years of consistent effort. However, with government support, strong positioning on privacy, and integration with enterprise tools, Arattai can establish itself as a serious alternative in India. 

Whether it becomes a global giant or remains a national player depends on execution. If it can sustain growth, build trust, and create real communities, Arattai could one day stand as a strong challenger in a market long dominated by WhatsApp and Telegram. 

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