15C
Delhi
Wednesday, January 27, 2021

Indian SaaS firms may clock $20bn in revenue by 2022: Report

- Advertisement -

Indian SaaS firms may clock $20bn in revenue by 2022: ReportBengaluru, Dec 1 (IANS) Software-as-a-Service (SaaS) companies like Zoho, Druva, Icertis and Freshworks have field the innovation in India, with SaaS firms poised to reach between $18 to $20 billion in revenue by 2022, a new report forecast on Tuesday.

The Indian SaaS companies have the potential to capture a 7-9 per cent share of the global SaaS market by 2022, according to a new report by Bain & Company that analysed a wide range of Indian SaaS companies which have, since 2010, evolved from the rise of a few upstarts to a multibillion dollar industry today.

Such companies such as Zoho, Druva, Icertis and Freshworks have breached the $100 million annual recurring revenue (ARR) mark, with a healthy pipeline of companies well placed to follow over the next 12 to 18 months.

Acclaimed first-gen founders, such as Sridhar Vembu of Zoho and Girish Mathrubootham of Freshworks, have played a pivotal role in India’s SaaS journey by actively engaging to build a community of budding entrepreneurs, which led to the development of many new ventures and immense job creation.

READ ALSO:  Cloud revenue will rise to 6.3 percent in 2020 says Gartner

For example, Freshworks created an entrepreneurship cascade of more than 25 companies, including Voonik, Revv and SurveySparrow which, in turn, have already created 500 to 1,000 jobs.

“We now have a thriving ecosystem of enablers comprised of both domestic and global SaaS investors, over a hundred SaaS angels with four or more investments, incubators and accelerators and SaaS development events and initiatives sponsored by communities such as SaaSBOOMi,” said Arpan Sheth, partner and leader of Bain & Company’s Asia-Pacific Technology, Vector and Advanced Analytics practices.

“The impact of these enablers can be witnessed in SaaS companies’ faster trajectory to scale in recent years, with over 50 companies having breached the $10 million ARR milestone and many more are expected to follow,” Sheth added.

The Indian SaaS companies are trying to scale through specific initiatives such as investment in market creation via freemium offerings, innovative monetisation models and clear articulation of benefits to the customer with tangible return on investment (ROI) metrics.

“Companies such as Yellow Messenger and Vernacular.ai are closing large, global-sized contracts by targeting marquee customers in the Indian market,” the report mentioned.

READ ALSO:  Indians fearful yet hopeful of economic well-being

Indian SaaS companies today have different areas of focus, classified across multiple vectors such as size of customer, type of solution and geography of focus.

READ ALSO:  Jio tops subscription race despite voice call charges

“SaaS in India has recently witnessed significant funding traction, surpassing $1.3 billion of annual investment in 2019. Horizontal business software was the largest sub-segment, accounting for two-thirds of all SaaS investment and vertical-specific SaaS grew the fastest, albeit on a small base,” informed Lalit Reddy, partner and leader in Bain India’s Private Equity and Digital Delivery practices.

Even amid Covid-19, SaaS has been a prominent investment theme with a growing share of venture capital (VC) and growth equity (GE) investments.

“SaaS investments were 15 per cent of VC and GE investments in the first half (H1) of 2019 versus 20 percent in H1 2020. SaaS also emerged as the top priority technology sub-sector of focus in an investor survey, we conducted last year,” Reddy added.

Source: IANS

India Updates
India Updates is an independent news & Information website. Follow us for regular updates on News and Information.

Follow Us On

Related News

LEAVE A REPLY

Please enter your comment!
Please enter your name here

Trending Topics In India

Covid 19 India Updates

Trending News In India

Trending Showbiz

Trending Sports

Latest Trending News In India

Congress demands sacking of Home Minister over Delhi violence

New Delhi, Jan 27 (IANS) A day after violent clashes broke out between the police and the protesting farmers in the heart of the...

Cryptocurrency industry hopeful as RBI mulls over digital currency

New Delhi, Jan 27 (IANS) With the Reserve Bank of India (RBI) now saying that it is exploring the need for a digital version...

45 buses damaged in Jan 26 violence, says DTC

New Delhi, Jan 27 (IANS) At least 45 Delhi Transport Corporation (DTC) buses were damaged in the violence on Republic Day as section of...

Tractor rally violence: Plea in HC seeks removal of Delhi top cop

New Delhi, Jan 27 (IANS) A petition has been filed in the Delhi High Court seeking removal of Delhi Police Commissioner S.N. Shrivastava from...