How to integrate Zoho inventory MCP with Pydantic AI

This guide walks you through connecting Zoho inventory to Pydantic AI using the Composio tool router. By the end, you'll have a working Zoho inventory agent that can check current stock for a specific item, list all pending sales orders today, create a new purchase order for supplier through natural language commands. This guide will help you understand how to give your Pydantic AI agent real control over a Zoho inventory account through Composio's Zoho inventory MCP server. Before we dive in, let's take a quick look at the key ideas and tools involved.

Get started for freeGet a demo
Zoho inventory logoZoho inventory
Oauth2

Zoho Inventory is a cloud-based inventory and order management solution for businesses. It streamlines stock tracking, order fulfillment, and multi-channel inventory control.

58 Tools

Introduction

This guide walks you through connecting Zoho inventory to Pydantic AI using the Composio tool router. By the end, you'll have a working Zoho inventory agent that can check current stock for a specific item, list all pending sales orders today, create a new purchase order for supplier through natural language commands.

This guide will help you understand how to give your Pydantic AI agent real control over a Zoho inventory account through Composio's Zoho inventory MCP server.

Before we dive in, let's take a quick look at the key ideas and tools involved.

Also integrate Zoho inventory with

ChatGPTOpenAI Agents SDKClaude Agent SDKClaude CodeClaude CoworkCodexOpenCodeCursorVS CodeOpenClawHermesCLIGoogle ADKLangChainVercel AI SDKMastra AILlamaIndexCrewAI

TL;DR

Here's what you'll learn:
  • How to set up your Composio API key and User ID
  • How to create a Composio Tool Router session for Zoho inventory
  • How to attach an MCP Server to a Pydantic AI agent
  • How to stream responses and maintain chat history
  • How to build a simple REPL-style chat interface to test your Zoho inventory workflows

What is Pydantic AI?

Pydantic AI is a Python framework for building AI agents with strong typing and validation. It leverages Pydantic's data validation capabilities to create robust, type-safe AI applications.

Key features include:

  • Type Safety: Built on Pydantic for automatic data validation
  • MCP Support: Native support for Model Context Protocol servers
  • Streaming: Built-in support for streaming responses
  • Async First: Designed for async/await patterns

What is the Zoho inventory MCP server, and what's possible with it?

The Zoho inventory MCP server is an implementation of the Model Context Protocol that connects your AI agent and assistants like Claude, Cursor, etc directly to your Zoho Inventory account. It provides structured and secure access to your inventory management system, so your agent can perform actions like tracking stock levels, managing sales and purchase orders, updating product details, and syncing inventory across sales channels on your behalf.

  • Real-time stock tracking and updates: Let your agent monitor inventory levels, adjust quantities, and receive alerts when items are running low or out of stock.
  • Order management automation: Have the agent create, update, or track sales and purchase orders, making it easy to keep tabs on every transaction.
  • Product catalog management: Direct your agent to add new products, update existing details, or manage pricing and SKU information to keep your catalog current and accurate.
  • Multi-channel inventory syncing: Enable your agent to synchronize inventory data across multiple online stores and marketplaces, ensuring consistency and reducing errors.
  • Shipment and fulfillment handling: Empower your agent to generate shipment orders, track deliveries, and manage warehouse operations for streamlined fulfillment.

What is the Composio tool router, and how does it fit here?

What is Composio SDK?

Composio's Composio SDK helps agents find the right tools for a task at runtime. You can plug in multiple toolkits (like Gmail, HubSpot, and GitHub), and the agent will identify the relevant app and action to complete multi-step workflows. This can reduce token usage and improve the reliability of tool calls. Read more here: Getting started with Composio SDK

The tool router generates a secure MCP URL that your agents can access to perform actions.

How the Composio SDK works

The Composio SDK follows a three-phase workflow:

  1. Discovery: Searches for tools matching your task and returns relevant toolkits with their details.
  2. Authentication: Checks for active connections. If missing, creates an auth config and returns a connection URL via Auth Link.
  3. Execution: Executes the action using the authenticated connection.

Step-by-step Guide

Step by step09 STEPS
1

Prerequisites

Before starting, make sure you have:
  • Python 3.9 or higher
  • A Composio account with an active API key
  • Basic familiarity with Python and async programming
2

Getting API Keys for OpenAI and Composio

OpenAI API Key
  • Go to the OpenAI dashboard and create an API key. You'll need credits to use the models, or you can connect to another model provider.
  • Keep the API key safe.
Composio API Key
  • Log in to the Composio dashboard.
  • Navigate to your API settings and generate a new API key.
  • Store this key securely as you'll need it for authentication.
3

Install dependencies

bash
pip install composio pydantic-ai python-dotenv

Install the required libraries.

What's happening:

  • composio connects your agent to external SaaS tools like Zoho inventory
  • pydantic-ai lets you create structured AI agents with tool support
  • python-dotenv loads your environment variables securely from a .env file
4

Set up environment variables

bash
COMPOSIO_API_KEY=your_composio_api_key_here
USER_ID=your_user_id_here
OPENAI_API_KEY=your_openai_api_key

Create a .env file in your project root.

What's happening:

  • COMPOSIO_API_KEY authenticates your agent to Composio's API
  • USER_ID associates your session with your account for secure tool access
  • OPENAI_API_KEY to access OpenAI LLMs
5

Import dependencies

python
import asyncio
import os
from dotenv import load_dotenv
from composio import Composio
from pydantic_ai import Agent
from pydantic_ai.mcp import MCPServerStreamableHTTP

load_dotenv()
What's happening:
  • We load environment variables and import required modules
  • Composio manages connections to Zoho inventory
  • MCPServerStreamableHTTP connects to the Zoho inventory MCP server endpoint
  • Agent from Pydantic AI lets you define and run the AI assistant
6

Create a Tool Router Session

python
async def main():
    api_key = os.getenv("COMPOSIO_API_KEY")
    user_id = os.getenv("USER_ID")
    if not api_key or not user_id:
        raise RuntimeError("Set COMPOSIO_API_KEY and USER_ID in your environment")

    # Create a Composio Tool Router session for Zoho inventory
    composio = Composio(api_key=api_key)
    session = composio.create(
        user_id=user_id,
        toolkits=["zoho_inventory"],
    )
    url = session.mcp.url
    if not url:
        raise ValueError("Composio session did not return an MCP URL")
What's happening:
  • We're creating a Tool Router session that gives your agent access to Zoho inventory tools
  • The create method takes the user ID and specifies which toolkits should be available
  • The returned session.mcp.url is the MCP server URL that your agent will use
7

Initialize the Pydantic AI Agent

python
# Attach the MCP server to a Pydantic AI Agent
zoho_inventory_mcp = MCPServerStreamableHTTP(url, headers={"x-api-key": COMPOSIO_API_KEY})
agent = Agent(
    "openai:gpt-5",
    toolsets=[zoho_inventory_mcp],
    instructions=(
        "You are a Zoho inventory assistant. Use Zoho inventory tools to help users "
        "with their requests. Ask clarifying questions when needed."
    ),
)
What's happening:
  • The MCP client connects to the Zoho inventory endpoint
  • The agent uses GPT-5 to interpret user commands and perform Zoho inventory operations
  • The instructions field defines the agent's role and behavior
8

Build the chat interface

python
# Simple REPL with message history
history = []
print("Chat started! Type 'exit' or 'quit' to end.\n")
print("Try asking the agent to help you with Zoho inventory.\n")

while True:
    user_input = input("You: ").strip()
    if user_input.lower() in {"exit", "quit", "bye"}:
        print("\nGoodbye!")
        break
    if not user_input:
        continue

    print("\nAgent is thinking...\n", flush=True)

    async with agent.run_stream(user_input, message_history=history) as stream_result:
        collected_text = ""
        async for chunk in stream_result.stream_output():
            text_piece = None
            if isinstance(chunk, str):
                text_piece = chunk
            elif hasattr(chunk, "delta") and isinstance(chunk.delta, str):
                text_piece = chunk.delta
            elif hasattr(chunk, "text"):
                text_piece = chunk.text
            if text_piece:
                collected_text += text_piece
        result = stream_result

    print(f"Agent: {collected_text}\n")
    history = result.all_messages()
What's happening:
  • The agent reads input from the terminal and streams its response
  • Zoho inventory API calls happen automatically under the hood
  • The model keeps conversation history to maintain context across turns
9

Run the application

python
if __name__ == "__main__":
    asyncio.run(main())
What's happening:
  • The asyncio loop launches the agent and keeps it running until you exit

Complete Code

Here's the complete code to get you started with Zoho inventory and Pydantic AI:

python
import asyncio
import os
from dotenv import load_dotenv
from composio import Composio
from pydantic_ai import Agent
from pydantic_ai.mcp import MCPServerStreamableHTTP

load_dotenv()

async def main():
    api_key = os.getenv("COMPOSIO_API_KEY")
    user_id = os.getenv("USER_ID")
    if not api_key or not user_id:
        raise RuntimeError("Set COMPOSIO_API_KEY and USER_ID in your environment")

    # Create a Composio Tool Router session for Zoho inventory
    composio = Composio(api_key=api_key)
    session = composio.create(
        user_id=user_id,
        toolkits=["zoho_inventory"],
    )
    url = session.mcp.url
    if not url:
        raise ValueError("Composio session did not return an MCP URL")

    # Attach the MCP server to a Pydantic AI Agent
    zoho_inventory_mcp = MCPServerStreamableHTTP(url, headers={"x-api-key": COMPOSIO_API_KEY})
    agent = Agent(
        "openai:gpt-5",
        toolsets=[zoho_inventory_mcp],
        instructions=(
            "You are a Zoho inventory assistant. Use Zoho inventory tools to help users "
            "with their requests. Ask clarifying questions when needed."
        ),
    )

    # Simple REPL with message history
    history = []
    print("Chat started! Type 'exit' or 'quit' to end.\n")
    print("Try asking the agent to help you with Zoho inventory.\n")

    while True:
        user_input = input("You: ").strip()
        if user_input.lower() in {"exit", "quit", "bye"}:
            print("\nGoodbye!")
            break
        if not user_input:
            continue

        print("\nAgent is thinking...\n", flush=True)

        async with agent.run_stream(user_input, message_history=history) as stream_result:
            collected_text = ""
            async for chunk in stream_result.stream_output():
                text_piece = None
                if isinstance(chunk, str):
                    text_piece = chunk
                elif hasattr(chunk, "delta") and isinstance(chunk.delta, str):
                    text_piece = chunk.delta
                elif hasattr(chunk, "text"):
                    text_piece = chunk.text
                if text_piece:
                    collected_text += text_piece
            result = stream_result

        print(f"Agent: {collected_text}\n")
        history = result.all_messages()

if __name__ == "__main__":
    asyncio.run(main())

Conclusion

You've built a Pydantic AI agent that can interact with Zoho inventory through Composio's Tool Router. With this setup, your agent can perform real Zoho inventory actions through natural language. You can extend this further by:
  • Adding other toolkits like Gmail, HubSpot, or Salesforce
  • Building a web-based chat interface around this agent
  • Using multiple MCP endpoints to enable cross-app workflows (for example, Gmail + Zoho inventory for workflow automation)
This architecture makes your AI agent "agent-native", able to securely use APIs in a unified, composable way without custom integrations.
TOOLS

Supported Tools

Every Zoho inventory action and event your agent gets out of the box.

Add Credit Note Comment

Tool to add a comment to a credit note in Zoho Inventory.

Add Invoice Attachment

Tool to upload an attachment to a specific invoice.

Add Invoice Comment

Tool to add a comment to a specific invoice in Zoho Inventory.

Apply Credits To Invoices

Tool to apply credits from a credit note to one or more invoices.

Bulk Delete Sales Orders

Tool to bulk delete sales orders.

Bulk Email Invoices

Sends multiple invoices by email to a contact in a single API call.

Bulk Export Invoices

Tool to bulk export invoices as a single PDF.

Bulk Print Invoices

Generate a consolidated PDF containing multiple invoices for printing or archiving.

Bulk Print Packages

Tool to bulk print package slips as a consolidated PDF.

Cancel Invoice Write Off

Tool to cancel write off for an invoice.

Create Bill

Tool to create a bill in Zoho Inventory.

Create Contact

Tool to create a new contact (customer or vendor) in Zoho Inventory.

Create Contact Person

Tool to create a contact person.

Create Credit Note

Tool to create a new credit note in Zoho Inventory.

Create Customer Payment

Tool to create a customer payment in Zoho Inventory.

Create Invoice

Tool to create a new invoice in Zoho Inventory.

Create Item

Tool to create a new item in Zoho Inventory.

Create Item Group

Tool to create an item group in Zoho Inventory.

Create Package

Tool to create a package for a sales order in Zoho Inventory.

Create Purchase Order

Tool to create a purchase order in Zoho Inventory.

Create Sales Order

Tool to create a sales order in Zoho Inventory.

Deactivate Contact

Tool to mark a contact as inactive in Zoho Inventory.

Deactivate Item

Tool to mark an item as inactive in Zoho Inventory.

Deactivate Item Group

Tool to mark an item group as inactive in Zoho Inventory.

Delete Composite Item

Permanently deletes a composite item from Zoho Inventory.

Delete Contact

Tool to delete a contact.

Delete Contact Person

Tool to delete a contact person.

Delete Invoice

Tool to delete an invoice.

Delete Invoice Attachment

Tool to delete an invoice attachment.

Delete Invoice Comment

Delete a specific comment from an invoice in Zoho Inventory.

Delete Item

Tool to delete an item.

Delete Item Group

Tool to delete an item group.

Delete Item Image

Tool to delete an image associated with an item.

Delete Package

Tool to delete a package.

Delete Sales Order

Tool to delete a sales order.

Disable Payment Reminder

Tool to disable payment reminders for an invoice.

Email Contact

Tool to email a contact in Zoho Inventory.

Email Contact Statement

Tool to email a statement of transactions to a contact.

Email Credit Note

Tool to email a credit note to customers.

Email Invoice

Tool to email a specific invoice to customers.

Enable Invoice Payment Reminder

Tool to enable payment reminders for an invoice.

Get Contact

Tool to retrieve a specific contact by ID from Zoho Inventory.

Get Contact Address

Tool to get contact address.

Get Credit Note

Tool to retrieve a credit note by ID.

Get Credit Note Email Content

Tool to get credit note email content including subject, body, recipients, and available templates.

Get Current User

Tool to get details of the currently authenticated user in Zoho Inventory.

Get Sales Order

Tool to retrieve the details of an existing sales order.

List Bills

Tool to list bills.

List Contacts

Tool to list all contacts (customers and vendors) in Zoho Inventory.

List Credit Notes

Tool to list all credit notes.

List Currencies

Tool to list all currencies configured in Zoho Inventory.

List Invoice Payments

Tool to list all payments received for a specific invoice.

List Invoices

Tool to list all invoices in Zoho Inventory.

List Item Groups

Tool to list all item groups in Zoho Inventory.

List Items

Tool to list all items in Zoho Inventory.

List Organizations

Tool to list all organizations the user has access to in Zoho Inventory.

List Purchase Orders

Tool to list purchase orders.

List Sales Orders

Tool to list sales orders.

FRAMEWORKS

How to build Zoho inventory MCP Agent with another framework

ChatGPT logo

ChatGPT

Use Zoho inventory MCP with ChatGPT

OpenAI Agents SDK logo

OpenAI Agents SDK

Use Zoho inventory MCP with OpenAI Agents SDK

Claude Agent SDK logo

Claude Agent SDK

Use Zoho inventory MCP with Claude Agent SDK

Claude Code logo

Claude Code

Use Zoho inventory MCP with Claude Code

Claude Cowork logo

Claude Cowork

Use Zoho inventory MCP with Claude Cowork

Codex logo

Codex

Use Zoho inventory MCP with Codex

Cursor logo

Cursor

Use Zoho inventory MCP with Cursor

OpenClaw logo

OpenClaw

Use Zoho inventory MCP with OpenClaw

Hermes logo

Hermes

Use Zoho inventory MCP with Hermes

CLI logo

CLI

Use Zoho inventory MCP with CLI

Google ADK logo

Google ADK

Use Zoho inventory MCP with Google ADK

LangChain logo

LangChain

Use Zoho inventory MCP with LangChain

Vercel AI SDK logo

Vercel AI SDK

Use Zoho inventory MCP with Vercel AI SDK

Mastra AI logo

Mastra AI

Use Zoho inventory MCP with Mastra AI

LlamaIndex logo

LlamaIndex

Use Zoho inventory MCP with LlamaIndex

CrewAI logo

CrewAI

Use Zoho inventory MCP with CrewAI

OpenCode logo

OpenCode

Use Zoho inventory MCP with OpenCode

VS Code logo

VS Code

Use Zoho inventory MCP with VS Code

FAQ

Frequently asked questions

With a standalone Zoho inventory MCP server, the agents and LLMs can only access a fixed set of Zoho inventory tools tied to that server. However, with the Composio Tool Router, agents can dynamically load tools from Zoho inventory and many other apps based on the task at hand, all through a single MCP endpoint.

Yes, you can. Pydantic AI fully supports MCP integration. You get structured tool calling, message history handling, and model orchestration while Tool Router takes care of discovering and serving the right Zoho inventory tools.

Yes, absolutely. You can configure which Zoho inventory scopes and actions are allowed when connecting your account to Composio. You can also bring your own OAuth credentials or API configuration so you keep full control over what the agent can do.

All sensitive data such as tokens, keys, and configuration is fully encrypted at rest and in transit. Composio is SOC 2 Type 2 compliant and follows strict security practices so your Zoho inventory data and credentials are handled as safely as possible.

Start with Zoho inventory.It takes 30 seconds.

Managed auth, hosted MCP servers, and every Zoho inventory tool your agent needs.Free to start.

Start building
Customer stories

Teams ship real agents on Composio

GET STARTED FOR FREEBOOK A DEMO
agent.aiZoomLettaGleanHubSpotAWSWabi

Karan skipped his own birthday party to fix our critical issue. It was 10pm and he diverted his Waymo to help us instead. This really sets the bar — it shows the commitment you need when users rely on your software.

Harsha Gaddipati
Harsha Gaddipati
Co-founder, Slashy

A lot of students tell us that the moment their connected tools start talking to each other inside Opennote feels almost magical. The agent just knows them, and it's immensely helped keep new users on the platform.

Abhi Arya
Abhi Arya
Co-founder, Opennote

We chose Composio over Pipedream because it delivered depth where it mattered — niche tools and tricky edge cases other platforms simply ignored. That gave us confidence to scale without compromising.

Nirman Dave
Nirman Dave
CEO, Zams

As a solo builder, shipping fast is life or death. The only way I can outcompete incumbents is by outmanoeuvring them. Getting bogged down managing agent auth would have been a death sentence.

Ryan Yu
Ryan Yu
Founder, Extra Thursday

Before Composio, adding tool integrations was slow and resource-intensive. Each one could take weeks of engineering time, and maintaining them meant constantly keeping up with API changes.

Tomisin Jenrola
Tomisin Jenrola
Founder & CEO, SwarmZero

With hands-on help from their founder, we integrated Gmail and Google Drive in just 30 minutes. This level of personal support and commitment is exactly what startups should strive for.

Jerome Leclanche
Jerome Leclanche
Co-Founder, Ingram Technologies