Synopsis
The report said that investments in the space increased by 170% over 2020 and are expected to reach $4.5 billion in 2021.
ETtechIndian Software-as-a-Service (SaaS) companies are poised to reach $30 billion in revenue, capturing 8% to 9% share of the global SaaS market by 2025, according to a new report by Bain & Company. The report said that investments in the space increased by 170% over 2020 and are expected to reach $4.5 billion in 2021.
“While the overall growth in funding has been driven by an increase in deal volume across stages, there has been notable growth in the volume of deals larger than $50 million, as investors give a clear vote of confidence in the potential of Indian SaaS companies to achieve substantial future growth,” said Arpan Sheth who is a partner & leader in Bain & Company’s Global Vector Solutions Group.
India has the opportunity to develop a true niche in horizontal infrastructure software, vertical business software, and SMB-focused SaaS companies. “Going forward, between 2021 and 2025, there will be increased demand for SaaS talent in key functions—for example thrice the current demand for go-to-market, twice the existing demand in product management and engineering, both. Meeting this talent demand will be a critical part of India’s SaaS growth story,” said Aditya Shukla, partner, Bain & Company.
Other key findings:
-Indian SaaS companies are expected to grow at ~30% CAGR over 2020–25 and double their share in the global market to 8%–9% by 2025
-India now has 13 SaaS unicorns as compared to one in 2018.
STARTUP ROCKSTARS IN 2021
Sign-in to see our list of the most promising startups of 2021
-Indian SaaS companies currently employ 62,000 people
-250 new companies have been set up by former SaaS employees, which employ about 5,000 people
-India has the third largest SaaS ecosystem globally, after USA and China
-100% growth in exits in 2021 over 2018
-Strong ARR-to-funding ratio in line with global SaaS peers
-The number of companies hitting a $100m+ annual revenue run rate increased to 7-9 from 4-5 a year ago.
-SaaS-specific talent demand expected to grow two to three times in the next 5 years
-The top 15 deals constituted ~75% of total deal value in 2021
-SMB-focused India for India and enterprise-focused India for the world companies are attracting most of the funding, with 65%–70% deal volume share in 2021
-Increased interest in enterprise collaboration, events tech, conversational AI, and HR tech in horizontal business software
Stay on top of technology and startup news that matters. Subscribe to our daily newsletter for the latest and must-read tech news, delivered straight to your inbox.
ETPrime stories of the day
SynopsisThe report said that investments in the space increased by 170% over 2020 and are expected to reach $4.5 billion in 2021.ETtechIndian Software-as-a-Service (SaaS) companies are poised to reach $30 billion in revenue, capturing 8% to 9% share of the global SaaS market by 2025, according to a new report by Bain & Company. The report said that investments in the space increased by 170% over 2020 and are expected to reach $4.5 billion in 2021. “While the overall growth in funding has been driven by an increase in deal volume across stages, there has been notable growth in the volume of deals larger than $50 million, as investors give a clear vote of confidence in the potential of Indian SaaS companies to achieve substantial future growth,” said Arpan Sheth who is a partner & leader in Bain & Company’s Global Vector Solutions Group. India has the opportunity to develop a true niche in horizontal infrastructure software, vertical business software, and SMB-focused SaaS companies. “Going forward, between 2021 and 2025, there will be increased demand for SaaS talent in key functions—for example thrice the current demand for go-to-market, twice the existing demand in product management and engineering, both. Meeting this talent demand will be a critical part of India’s SaaS growth story,” said Aditya Shukla, partner, Bain & Company. Other key findings: -Indian SaaS companies are expected to grow at ~30% CAGR over 2020–25 and double their share in the global market to 8%–9% by 2025 -India now has 13 SaaS unicorns as compared to one in 2018. STARTUP ROCKSTARS IN 2021Sign-in to see our list of the most promising startups of 2021 -Indian SaaS companies currently employ 62,000 people -250 new companies have been set up by former SaaS employees, which employ about 5,000 people -India has the third largest SaaS ecosystem globally, after USA and China -100% growth in exits in 2021 over 2018 -Strong ARR-to-funding ratio in line with global SaaS peers -The number of companies hitting a $100m+ annual revenue run rate increased to 7-9 from 4-5 a year ago. -SaaS-specific talent demand expected to grow two to three times in the next 5 years -The top 15 deals constituted ~75% of total deal value in 2021 -SMB-focused India for India and enterprise-focused India for the world companies are attracting most of the funding, with 65%–70% deal volume share in 2021 -Increased interest in enterprise collaboration, events tech, conversational AI, and HR tech in horizontal business software Stay on top of technology and startup news that matters. Subscribe to our daily newsletter for the latest and must-read tech news, delivered straight to your inbox.ETPrime stories of the day