India’s SaaS Industry Predicted To Grow 5 Times Over The Next 5 Years
- ByAyushi Ray | July 31, 2021
India’s SaaS industry predicted to grow 5 times over the next 5 years. This is the result of a combined survey conducted jointly by venture capital firm Chiratae Ventures and management consultancy firm Zinnov. The report also noted that the capital required for starting a B2B SaaS startup that will help it to gain an unicorn status is absolutely half of that of B2C startups in India, and the revenue per employee for SaaS companies stands at twice that in the IT Services industry. “The growth continues unabated at a pace of ~51 percent CAGR, making the possibility of it becoming a trillion-dollar-valued industry by 2030, a strong reality,” the report noted. It is quite expected that this unprecedented growth would create 200,000+ new jobs over the course of next five years, besides the number of skilled employees employed by the Indian SaaS industry is also expected to grow by 5x in the same timeframe.
“It’s no secret that the future of business and scale is SaaS driven, more so in the post-pandemic landscape. What’s interesting however is how quickly Indian companies have set a global benchmark for the industry. The exponential growth unlocked in the last five years is a testament to how capital efficient the Indian SaaS industry is,” said Venkatesh Peddi, Executive Director and Head of SaaS, Chiratae Ventures. Currently, there are 51 unicorns in India, 10 of which are from the SaaS space, out of these four joined the sought after unicorn club in 2021 alone, the report noted. Along with these, the study highlighted that global VCs have been at the forefront of capitalising on the rising trillion-dollar Indian SaaS opportunity, with VC investments surging 10x in the last 10 years. Investments to the tune of $6 billion have been made in Indian SaaS companies so far, with over $4 billion coming in the last three years alone.
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