EY-Nasscom Report: 99% of Indian B2B SaaS Firms Embrace Deep-Tech Innovation

• ByStartupStory     |    August 23, 2023

A recent report by EY-Nasscom has unveiled that nearly 99% of Indian B2B SaaS companies are actively embracing deep-tech innovations to effectively tackle clients’ needs and challenges. The dominance of AI/ML adoption is at 54%, followed by Big Data/Descriptive Analytics at 39%, and Intelligent Automation at 7%. The report, titled “Unlocking DeepTech Potential in Indian B2B SaaS,” underscores the pivotal role of deep-tech in propelling growth within the industry.

“Indian B2B SaaS companies are focusing on deep-tech and AI, resulting in breakthrough growth through investments in inventive technologies. This approach can enable premium positioning and competitive advantage, as Indian companies challenge global leaders and gain market share,” said Nitin Bhatt, Technology Sector Leader, EY India. 

He added, “An ‘Invent in India’ mindset drives distinctive product innovations valued by top customers worldwide. A focus on developing deep-tech talent and improving access to patient capital will accelerate India’s SaaS leadership on the global stage.”

The study found that Indian B2B SaaS firms are increasingly honing in on AI-led digital transformation, particularly in predictive analysis, conversational AI, computer vision, and generative AI. By fostering an ecosystem that integrates strategic deep-tech solutions to meet evolving customer use cases, the industry can accelerate deep-tech innovation and scale.

Furthermore, the report reveals that one out of four (25%) Indian B2B SaaS companies surveyed are focused on inventive deep-tech solutions. Collectively, they have filed over 1,400 patents in the last five years, a substantial increase compared to the 574 patent filings in the preceding decade. Additionally, these companies are leveraging deep-tech to address horizontal application areas such as sales and marketing, human resources, and operations and supply chain.

In conclusion, the report suggests that disruptive Indian B2B SaaS firms concentrating on inventive deep-tech have the potential to achieve a sustainable Compound Annual Growth Rate (CAGR) of 30-50%.

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