India’s software-as-a-service (SaaS) industry is projected to reach the value of $1 trillion and generate 500,000 jobs by 2030.
The pandemic has accelerated businesses’ transition to digitization and automation.
Presently, $3 billion in annual subscription revenues is generated by the 1000+ funded startups and 10 unicorns comprising India’s SaaS sector.
This subset of the overall IT sector currently employs 40,000 workers with the potential to earn annual revenues of as much as $70 billion by 2030.
With this, they could enjoy 6% of the global market share which is being forecasted to be worth $1.3 trillion by 2030.
India’s SaaS Sector And Startups
4 decades into the entry of IT in India has led to the emergence of startups offering specialised software solutions such as billing and customer support through cloud that businesses subscribe to.
8 out of 10 Indian unicorns, that is businesses valued at at least a $1 billion, include
- BrowserStack, a cloud web and mobile testing platform
- Freshworks, an online cloud-based customer service
- Postman, a collaboration platform
- Zenoti, a cloud platform for salons, spas and med spas
- Chargebee, a subscription billing software
- Highradius, a fintech platform
- Icertis, a contract management software
- Dhruva, a data protection firm for the cloud.
But many challenges are faced by startups when it comes to acquiring capital in the early stages and hiring skilled professionals.
In order to reach their maximum potential over the next decade, these startups will have to increase funding by 3-4x the current level.
Despite the obstacles, India is on the cusp of an opportunity to shine on the world stage by developing global standard products and contributing to the nation’s GDP.
Six Indian SaaS firms turned unicorns during the pandemic, which is a reflection on the growth of the industry which is at 8% annually.
This amount is twice the growth of the overarching IT market.
In global IT and communications spending, SaaS and software contributed $600 billion of the $3 trillion last year.