Indian SaaS communities have been one of the beneficiaries of the pandemic as the enterprises embraced digital. Such digital transformations will drive a 60 percent increase in enterprise tech over the next ten years, a report by SaaSboomi and McKinsey said.
Indian SaaS communities have been one of the beneficiaries of the pandemic as the enterprises embraced digital. Such digital transformations will drive a 60 percent increase in enterprise tech over the next ten years, the report said.
The report “Shaping India’s SaaS Landscape” said the global SaaS market is expected to cross $500 billion in revenue by 2025 by growing at 18-20 percent annually. The report also noted that out of nearly a thousand funded SaaS companies in India, 10 have a unicorn status with a valuation of $1 billion. The startups generate about $2-3 billion in revenues and also employ close to 40,000 people.
The global SaaS market is also expected to cross $500 billion in revenue by 2025 growing at 18-20 percent annually. SaaS has come of age, with nearly a thousand funded SaaS startups and ten unicorns. SaaS companies collectively generate $2-3 billion in annual revenue and employ nearly 40,000 people and have a potential to create $1 trillion in value and nearly half a million jobs by 2030.
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Girish Mathrubootham, Founder & CEO, Freshworks and Founding Partner, SaaSBOOMi, said, “India is now a hotbed of innovation with nearly 1,000 SaaS companies and ten unicorns. ”
Debjani Ghosh, President, NASSCOM, said that Indian SaaS ecosystem has the potential to create $1 trillion in value and nearly half a million jobs by 2030, owing to digital transformation and automation in organizations across sectors.
“Increasing digital transformation is accelerating SaaS adoption aiming to perform analytics & AI, and data management applications. However, to create awareness around the potential of SaaS in India, the Government has to collaborate with industry associations, investors, and corporates, and drive large-scale training programs by partnering with universities and institutions,” she said.
However to tap this potential, there is a need for more investment and exit routes. Investments in the Indian SaaS industry stood at $1.5 billion in VC funding in 2020 alone. But a lot more would be needed to keep this momentum going. The Indian SaaS space also has had limited exits via acquisitions, buyouts or IPOs so far only 5-10 percent of Indian companies had exits in the last decade, compared to 20 percent of their US counterparts. Significant development of exit routes could drive the virtuous cycle of value-creation.
Manav Garg, CEO & Founder, Eka Software Solutions, Founding Partner SaaSBOOMii, said that while there are challenges ahead, these are not insurmountable and Indian SaaS community can build on its strong foundation to make SaaS a preeminent industry in India that employs a lot of talent, contributes significantly to India’s GDP and creates unmatched global products and platforms.
https://www.moneycontrol.com/news/business/indias-saas-companies-to-open-up-1-trillion-opportunities-5-lakh-jobs-by-2030-7145181.html
