Indian SaaS to reach USD $ 100 Bn in revenues by 2026, says a new report by Chiratae, Zinnov
BANGALORE, India, April 21, 2022 /PRNewswire/ — The Indian SaaS juggernaut is experiencing a ‘coming-of-age’ moment, with an incredible bull run that has firmly anchored its position on the global stage. The SaaS industry is set to clock in a massive USD $ 100 Bn in revenues by 2026. This was underscored by the 2022 edition of the Chiratae-Zinnov India SaaS report titled, “India SaaS – Punching Through the Global Pecking Order.” As the industry has matured, profitability has become a realistic milestone for SaaS companies, and they have cracked the Enterprise conundrum with over 40% revenue contribution. On the global stage, India is gearing to supersede China as the second largest SaaS nation in the next few years. Key Facts and Figures
The report identifies the key attributes that have accelerated the success of the SaaS industry – ‘SPARK’ – Supportive Policies, Proven Global Caliber, Abundant Liquidity, Rearing Domestic Talent, and Kindled Exit Options. Today, 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 early SaaS companies are attracting unicorn valuations and also successfully listing on the public markets. These successes, coupled with stronger fundamentals and the path to profitability, are making SaaS companies in India an attractive investment theme. The industry aims to attract a strong private capital infusion of close to USD $ 6.5 Bn in the coming year alone, notes the report. Key findings on the year gone by
On the launch of this report, Sudhir Sethi, Founder and Chairman, Chiratae Ventures, stated, “India is a global SaaS leader, and Chiratae Ventures has been fortunate to be at the center of this surging momentum, with over 35 SaaS companies in our portfolio like Uniphore, which recently raised USD $ 400 Mn, and others like Pixis, Hevo Data, Healthplix, CropIn, Pando, Deepfence, and Squadcast which are valued over USD $ 3.5 Bn and last year overall raised USD $ 600 Mn. Chiratae predicts that investments in Indian SaaS will continue to grow at a massive pace with the revenue poised to cross USD $ 100 Bn by 2026.” Pari Natarajan, CEO, Zinnov, said, “2021 was a watershed year for Indian SaaS – including exponential valuations, successful IPO debuts, a vast influx of VC investments, and an unprecedented number of unicorns. 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, led by visionary founders and a critical mass of engineering and product teams serving this purpose. All this has firmly put Indian SaaS on the global stage, and on the path of crossing the milestone of USD $100 Bn in revenue by 2026. In fact, India is fast emerging as a clear leader in SaaS, and will supersede China to become the second largest SaaS nation in the next few years.” The report identifies Cloud Security, Cloud-Native Enablers, Hyper Intelligent Automation, Web3, and Verticalized solutions as key areas of interest for investors in 2022 and beyond. Some of the key SaaS categories expected to gain traction in 2022 and beyond are: Cloud-Native is an approach to building and running applications as a Cloud-based delivery model, which is expected to accelerate modern application development based on its various advantages. VC investments in this space are exceeding USD $ 7 Bn in funding, giving rise to many unicorns in the segment
About Chiratae Launched in 2006, Chiratae Ventures India Advisors is India’s leading technology Venture Capital funds advisor. The funds advised by Chiratae Ventures India Advisors collectively have close to $1Bn under management and 110+ investee companies across SaaS, Consumer Media & Tech, Health-tech, and Fin-tech. The fund has been an early backer of Cure.fit, FirstCry, Flipkart, Globalbees, Lenskart, Manthan, Myntra, PolicyBazaar and has invested in leaders like AgroStar, Bizongo,Bounce, Cropin, EarlySalary, GoMechanic, HealthifyMe, Hevo Data, Pyxis, Uniphore Vayana, amongst others. Chiratae closed its fourth fund, oversubscribed at $337 million in 2021. The team has delivered value for its investors through the years with over 40 exits, 3 IPOs and 8 Unicorns, with more round the corner. About Zinnov Founded in 2002, Zinnov is a global management and strategy consulting firm, with a presence in New York, Santa Clara, Houston, Chicago, Bangalore, Gurgaon, and Paris. Over the past 20 years, Zinnov has successfully consulted with over 250+ Fortune 500 enterprises to develop actionable insights to help them accelerate value creation – across dimensions of both revenue and optimization. With core expertise in Digital Engineering, Digital Transformation, Innovation, and Outsourcing Advisory, Zinnov assists clients by:
With their team of experienced consultants, subject matter experts, and research professionals, Zinnov serves clients from across multiple industry verticals including Enterprise Software, Hi-Tech, BFSI, Healthcare, Automotive, Retail, and Telecom in the US, Europe, Japan, and India. For more information, visit http://zinnov.com. Logo: https://mma.prnewswire.com/media/694742/Zinnov_Logo.jpg (Disclaimer: The above press release comes to you under an arrangement with PRNewswire India and this publication takes no editorial responsibility for the same) |
