A core model of cloud computing — SaaS (software-as-a-service) is a software delivery method where service providers host an application on their own servers, which a client can access via the internet. Reflecting a rapidly digitalizing global business environment, India’s SaaS industry has been going from strength to strength recently.
The number of software-as-a-service (SaaS) companies in India has doubled over the last five years. Now, according to a survey by Bain & Company, these Indian SaaS firms are on track to generate $30 billion dollars’ worth or 8% total global sales for this market opportunity during 2025’s fiscal year which will account for 3 out every 10 worldwide deals done within that same timeframe.
Arpan Sheth who is a partner & leader in Bain & Company’s Global Vector Solutions Group said “While the overall growth in funding has been driven by an increase in deal volume across stages, there has been notable growth in the volume of deals larger than $50 million, as investors give a clear vote of confidence in the potential of Indian SaaS companies to achieve substantial future growth“.
In the last three years, India has been a hotspot for SaaS startups. While there are only 13 unicorns in all of Asia Pacific now that count their wealth to $300 billion apiece with seven-figure annual recurring revenue (ARR) earnings over 100 million dollars; and as per one survey, investments into Indian companies reached an incredible height at 140%. The reason behind this rapid growth could be attributed mainly to how many high dollar deals were closed by these entrepreneurs from 2020 onwards where such sizable sums had never been invested before then.
“This strong demand for high-quality SaaS investment opportunities also means that beyond capital and network access, investors increasingly offer value add’ operational support in areas such as GTM (go to market), product, and recruitment to meet rising expectations from founders and to participate in deals” explained Sheth.
In addition, more than 250 new Indian firms were founded by former employees of Indian SaaS companies themselves, who now employ more than 5,000 people.
Overall, India is in for exciting times as far as SaaS is concerned as more companies move to the cloud. With India already having an advantage in this area, it is well-positioned to play a leading role in the global SaaS segment in the next couple of years.