Indian SaaS industry projects $26Bn revenue by 2026
BANGALORE, INDIA — The Indian Software-as-a-Service (SaaS) industry projects a 2.5-fold growth, reaching $26 billion in revenues by 2026.
According to a report by Chiratae Ventures and Zinnov, 93% of surveyed founders anticipate revenue growth in the next 12 months despite concerns of a global recession.
“The steadfastness of the Indian SaaS industry, coupled with its ability to adapt to changing market dynamics, has led to its outperformance on a global scale,” said Venkatesh Peddi, Managing Director at Chiratae Ventures.
Indian SaaS companies have seen consistent headcount growth, unlike their U.S. counterparts.
Seed-stage funding increased by 1.5 times, while early-stage funding surged by 1.6 times in 2022. Indian SaaS startups secured three times more funding in 2022 compared to 2019, with a steady CAGR of 47%.
Although late-stage funding was affected by declining valuations, stable deal volumes in Q1 2023 suggest a bottoming out of the funding slowdown.
The report sees opportunities in DevOps, Cybersecurity, and Vertical SaaS. India leads in the global DevOps market and has potential for innovative Cybersecurity solutions. Vertical SaaS presents investment opportunities with India’s 70 million-plus SMBs (small and medium-sized businesses).
Indian SaaS companies also excel in AI product development and the global Web 3 market, according to Pari Natarajan, CEO at Zinnov.
“With the might of India’s 3 million-strong pool of tech talent behind them, Indian SaaS start-ups have solidified their position as a global SaaS powerhouse, and are on a fast-tracked path to shape the global technology landscape,” Natarajan concluded.
