Indian SaaS ecosystem to increase its global market share to 4-5%: Report
- IBEF
- March 7, 2022
According to a report by Motilal Oswal Financial Services Ltd, the software-as-a-service (SaaS) ecosystem in India is predicted to grow fast and raise its share of the global SaaS market to 4-5% by CY30, up from roughly 1% today, translating into a US$ 50-70 billion revenue opportunity. In the previous two decades, SaaS has emerged as one of the most significant disruptors in the worldwide IT sector. The covid-19 pandemic has accelerated the shift to SaaS, which offers greater flexibility, functionality, and remote productivity.
Indian companies are now distinguishing themselves in the SaaS area, with a long list of companies joining the unicorn club. While the bulk of businesses concentrate on horizontal business software, vertical solutions and innovative infrastructure SaaS businesses are also growing in India. Unlike the technological services market, SaaS companies, generate significant revenue from Indian enterprises and have a broad business strategy that targets both corporate and small and medium businesses. As a result, VC/PE firms have increased their interest in the industry, investing over US$ 4.5 billion in CY21, nearly three times as much as a year before.
Motilal Oswal expects more SaaS companies to follow Freshworks' lead and opt for a public listing due to their proven scale and business model. According to the brokerage firm, Indian SaaS companies have benefited from the shift to digital sales as a result of the travel restrictions imposed to combat the pandemic, in addition to their strong product offerings.
Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.
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