Shaping India's SaaS LandScape

Built in India.
Built for the world.

What's in the report?

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 $1 trillion.

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

~10

# Indian SaaS unicorns

150+

Indian SaaS companies having>$1M in ARR

~$2.6 Bn

Combined revenue of pure-play SaaS companies in India

~$4 Bn

Total VC Investments in Indian SaaS companies in the last 5 years

30%+

Revenue growth rate of Indian SaaS industry over 2018-20

~40 K

# People employed by indian Pure-play SaaS companies

Key Messages

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....

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The report by SaaSBOOMi and McKinsey noted Indian SaaS providers...

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The report by SaaSBOOMi and McKinsey noted Indian SaaS providers...

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About the “Shaping India’s SaaS Landscape” Report

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 and contributions