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India’s path to SaaS leadership is clear, but challenges remain

Software-as-a-Service is one of the most important sectors in tech today. While its transformative potential was quite well-spoken surpassing the pandemic, the sudden pivot to distributed workforces caused interest in SaaS products to skyrocket as medium and large enterprises embraced digital and remote sales processes, significantly expanding their utility.

This miracle is global, but India in particular has the opportunity to take its SaaS momentum to the next level. The Indian SaaS industry is projected to generate revenue of $50 billion to $70 billion and win 4%-6% of the global SaaS market by 2030, creating as much as $1 trillion in value, equal to a report by SaaSBOOMi and McKinsey.

There are unrepealable important long-term trends that are fueling this expansion.

The rise of Indian SaaS unicorns

The Indian SaaS polity has seen a flurry of innovation and success. Entrepreneurs in India have founded well-nigh a thousand funded SaaS companies in the last few years, doubling the rate from five years ago and creating several unicorns in the process. Together, these companies generate $2 billion to $3 billion in total revenues and represent approximately 1% of the global SaaS market, equal to SaaSBOOMi and McKinsey.

These firms are diverse in terms of the clients they serve and the problems they solve, but several garnered global sustentation during the pandemic by enabling flexibility for newly remote workers. Zoho helped streamline this pivot by providing sales teams with apps for collateral, videos and demos; Freshworks offered businesses a seamless consumer wits platform, and Eka extended its deject platform to unify workflows from procurement to payments for the CFO office.

Other SaaS firms stayed rented in other ways. Over the undertow of the pandemic, ten new unicorns emerged: Postman, Zenoti, Innovacer, Highradius, Chargebee and Browserstack, Mindtickle, Byju, UpGrad and Unacademy. There were moreover several instances of substantial venture funding, including a $150 million deal for Postman, bringing the total value raised by the Indian SaaS polity in 2020 to virtually $1.5 billion, four times the investment in 2018.

India’s path to leadership

While the Indian SaaS polity has made worshipped progress in recent years, there are several key growth drivers that could lead to as much as $1 trillion in revenue by 2030. They include:

The global pivot to digital go-to-market

The number of enterprises that are well-appointed with assessing products and making merchantry decisions via Zoom is increasing rapidly. This embrace of digital go-to-market fundamentally levels the playing field for Indian companies in terms of wangle to customers and end-markets.

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