The Indian Software as a Service (SaaS) landscape continues to mature rapidly, with more companies reaching larger scale and driving heightened investor interest. In 2021, more than 35 Indian SaaS companies had $20 Million+ annual recurring revenue - a sevenfold increase over five years -with between 7 and 9 of these companies reaching the $100M annual recurring revenue milestone (versus one to two companies five years ago).
India could be on the cusp of unlocking a $1 trillion opportunity for Software-as-a-Service (SaaS) companies, creating nearly half a million new jobs by 2030, according to a report titled 'Shaping India’s SaaS Landscape' by SaaSBOOMi. Vertical business software has seen 100% year-over-year growth, with several Indian success stories emerging. Growth is primarily driven by an increased number of deals for vertical business software and larger deal sizes for horizontal business software.
A report says, software accounts for 20% of the total enterprise spending on technology but has a value creation of nearly 50%.
The SaaS companies founded in India by the Indian founders, that have the majority of their workforce in India, are serving both domestic and global customers, which is $2.6 billion in size and employs about 40,000 people, is expected to record a 20X revenue jump by 2030. The narrative goes beyond this mammoth opportunity.
This ‘20X jump’, which will generate $50-70 billion in revenue, is merely 6 percent of the global SaaS market —reflecting the untapped size of the pie and the huge window of opportunity that lies ahead for the SaaS industry. The Indian SaaS ecosystem will be one of the biggest value creation opportunities that we are going to see in the decade ahead of us. It is touted to grow at a CAGR of 18%.
The Indian SaaS landscape is maturing rapidly, with the number of SaaS firms doubling and 60+ SaaS firms having received Series C+ funding over the past five years. India has witnessed the emergence of SaaS-focused funds, combined with growing interest from new investor categories, such as corporate venture capital and sovereign wealth funds. Investment in Indian SaaS rose to $4.5 billion in 2021, an increase of 170% from 2020, with growth driven primarily by an increase in the number of $50 million-plus deals.
An expert says, with a growing number of world-class founders and strong investor support, Indian SaaS companies are poised to reach $30 billion in revenue by 2025, capturing an 8% to 9% share of the global SaaS market.
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