Funding for Indian SaaS to rise 62.5% to $6.5 billion this year: report
- ByStartupStory | April 20, 2022
Indian Software-as-a-Service/SaaS startups are expected to grow at a compounded annual growth rate of 55-70% to gain an overall revenue of $116 billion by the year 2026, according to a report by leading venture capital firm Chiratae and management consultancy Zinnov.
According to the report named ‘India SaaS: Punching through the global pecking order,’ overall funding for Indian SaaS startups is expected to touch 6.5 USD in 2022, billion this year, from 4 billion USD in 2021, which is an increase of 62.5%. The report further added that the average size of investments in Indian SaaS firms grew to 56 million USD in 2021 from roughly 25 million USD in 2020.
The report noted that there existed over 1,150 active Indian SaaS companies. Investors continue to back Indian SaaS startups due to their predictable revenues and growth outcomes. The report showed that in 2022 nearly 12 SaaS startups could become unicorns – or those valued at $ 1 billion or more. Five were SaaS companies among the 14 startups that turned unicorns in the first quarter of 2022.
“We are very excited about a few segments within SaaS, including cloud-native services, cloud security, hyper-intelligent automation that integrates AI & ML and the Web3 infra layer,” said Venkatesh Peddi MD, Chiratae Ventures. Chiratae Ventures is known for backing several software startups, including conversational automation platform Uniphore, no-code platform Hevo, customer experience management platform Cloudcherry, etc.
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