With the coronavirus pandemic creating new avenues for automation and digitization, the Indian SaaS industry is expected to touch the new high of $1 trillion by 2030. Along with this, it is also expected to generate 5 lakh new jobs in the market in the coming years.
The information was released in a report by SaasBoomia which is a community of industry founders and builders, in collaboration with McKinsey & Co and Nasscom. The report was published on Wednesday and titled ‘Shaping India’s SaaS Landscape’, which has evaluated that the Indian SaaS industry can grow revenues from $50 to $70 billion in the next nine years.
There are more than 1,000 funded SaaS startups in India, out of which ten are unicorns (companies with over $1 billion in valuations). This Indian SaaS ecosystem altogether brings about $2-3 billion in yearly revenue and employ approximately 40,000 people. As per the report, the number of unicorns would increase 10-fold by the end of the decade taking the industry to a $1 trillion valuation.
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Unicorns in India
The year 2021 is one of the luckiest years for India as 15 startups have already managed to get through the list of unicorns in the country, including the latest entrant, BrowserStack. While the other names are Innovaccer, Digit, Infra.Market, Five Star, CRED, Meesho, Groww, PharmEsay, Gupshup, ShareChat, Chargebee, Zeta, Moglix and Urban Company. The report said, “if the Indian companies working as SaaS providers run their businesses with their full potential, they can successfully yield yearly earnings of $50-$70 billion by 2030. This means that they will have 4-6 per cent of the global market share.” The calculation is based on recent public SaaS company revenue multiples, and on the basis of that, there is an opportunity to touch the golden figure of $1 trillion.
Challenges on the Way
However, the report also pointed out that the biggest challenges that the Indian SaaS industry is facing are when these are in their early stages of marketing and product development. Other than this, there is an acute shortage of hiring new talent due to the uncertain future of these new companies. It further says, “they need to shift to a growth-first mindset with a focus on investing in core operational capabilities to scale and win.”
The findings and developments in this report will offer Indian founders valuable insights that will assist them to engage in planning for the future and escalate the efforts in their future growth. With COVID-19 opening new opportunities, there will be an exceptional increase in digital transformation accelerating SaaS adoption.
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