Indian SaaS sector to clock $100 bn revenue by 2026: Chiratae-Zinnov study
The Indian software-as-a-service (SaaS) industry is likely to hit the $100 billion mark in revenue by 2026, superseding China as the second-largest SaaS nation in the world, a new report said on Tuesday.
Chiratae-Zinnov’s India SaaS report titled, “India SaaS – Punching Through the Global Pecking Order” stated that on the global stage, India is gearing to supersede China as the second-largest SaaS nation in the next few years.
The early SaaS companies like Freshworks are attracting unicorn valuations and also successfully listing on the public markets.
“India is a global SaaS leader, and Chiratae Ventures has been fortunate to be at the centre of this surging momentum, with over 35 SaaS companies in our portfolio,” said Sudhir Sethi, Founder and Chairman, Chiratae Ventures.
The report noted that the next wave of digital talent is expected from tier 2 and 3 cities and an expected pool of three million digitally-skilled workforces will be perfect for SaaS companies to scale up in the coming years.
“Not only have Indian SaaS companies come of age, but they have also been at the forefront of creating new for India and new for the world products,” said Pari Natarajan, CEO of Zinnov.
Leading SaaS firms have been at the forefront of localizing innovation by putting robust engineering and product teams in the top markets that they are catering to.
“The focus for the firms is to capitalize on the overall value delivered to consumers, thus improving their propensity to pay,” the report said. Cloud Security and Web3 are emerging as key areas of interest for investors within the SaaS segment, it added.
The industry aims to attract a strong private capital infusion of close to $6.5 billion in the coming year alone — a 55 percent increase over last year’s investments of $4.2 billion, according to the report by Chiratae-Zinnov. As the industry matures, profitability has become a real milestone for SaaS companies, and they have cracked the enterprise conundrum with over 40 percent revenue contribution.
[With Inputs from IANS]
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