Of the $3-trillion global enterprise IT and communications spending market, software, including
software as a service (SaaS) constituted $600 billion in 2020, growing at 7-8% per year –almost
twice as fast as the overall market. Indian SaaS companies have been gaining ground by building for
the world from India.
Indian SaaS companies now generate $2-3 billion in revenues each year and have earned about 1% of
the global market. If they reach their full potential, it can generate annual revenues of $50-$70
billion by 2030 and win 4-6% of the global market – a value-creation opportunity of $500 billion to
The last five years have seen a whirlwind of world-class products solving for global customers,
creating new product categories & an unprecedented influx of capital.
With opportunities abound, the questions remain about the size of this opportunity? Where does it
stand & how do we make the most of it? This report uncovers the building blocks & the opportunities
in the road ahead.
India's Flourishing SaaS Landscape
# Indian SaaS unicorns
Indian SaaS companies having>$1M in ARR
Combined revenue of pure-play SaaS companies in India
Total VC Investments in Indian SaaS companies in the last 5 years
Revenue growth rate of Indian SaaS industry over 2018-20
# People employed by indian Pure-play SaaS companies
Key trends shaping the Indian SaaS landscape
Software (and specifically SaaS) is the most attractive technology segment
driving ~50% of the value creation while comprising only 20% of enterprise tech spending
7 SaaS domains could be core drivers of a $500B market opportunity (by 2025)
Indian SaaS ecosystem has the potential to create $1 trillion in value and nearly
half a million jobs by 2030
Indian SaaS ecosystem is well positioned in multiple areas e.g., Developer Tools
& Vertical specific software
Favorable environment for Indian SaaS companies – digital go-to-market, ability
to cost effectively engage customers post-sale and privileged domain expertise
Reinvent go-to-market for digital (especially enterprise), and excel in product
(product management, design, ops and engineering)
Historically, most Indian SaaS companies have been systemically underinvesting in
growth compared to global and Indian leaders
Growth rate of Indian SaaS ecosystem could double as they pivot to driving high
growth over medium/long term instead of focusing on immediate profitability
Indian SaaS ecosystem could scale talent by 3-6x, SaaS start-ups could grow by
10x and could attract 3-4x of current funding levels
5 key imperatives for Indian SaaS ecosystem
In the news:
India’s software-as-a-service industry could reach $1 trillion in value....
Anchored by Manav Garg, the founder, and CEO of Eka, and aided by inputs from leading SaaS founders,
VCs and ecosystem enablers, “Shaping India’s SaaS Landscape” is a comprehensive report that captures
and synthesizes information from over 40 Indian SaaS startups to throw light on the growth of SaaS
startups in India, their growth potential, the Indian ecosystem’s role in it, and what these SaaS
startups need to do to capture a greater share of the global market.
This report was developed by SaaSBOOMi, which led to a comprehensive two-month effort to build a
perspective on the future of the SaaS landscape in India. McKinsey & Company as the knowledge
partner helped with independent third-party research and analysis. NASSCOM as the supporting partner
assisted with community outreach and expert analysis.
We are thankful for the support, guidance, and dedication of the SaaSBOOMi Steering Committee and
SaaSBOOMi member companies. In particular, we would like to acknowledge the contributions of Girish
Mathrubootham, Krish Subramanian, Mohit Bhatnagar, Sangeeta Gupta, and Shekhar Kirani. We would also
like to thank Eight Roads, Sequoia, Nexus Venture Partners, B Capital Group, Accel Partners,
Westbridge Capital, Tiger Global, and Microsoft for their valuable inputs.
A special acknowledgment is due to Avinash Raghava and the entire SaaSBOOMi team for their efforts