The growth rate is 1.5 times faster than the global SaaS growth. Top Indian pure-play vendors dominate the SaaS market, with the top 5 players accounting for 33% of market share. “The focus on digitisation has given a huge boost to the SaaS ecosystem. Our products and services are designed so that they become strategically essential for the world’s businesses. This is the right thing to do, have bold dreams for the SaaS ecosystem and understand what we need to do to make India a global hub for the SaaS ecosystem,” said Nasscom president Debjani Ghosh.
India has six SaaS unicorns — Zoho, Freshworks, Postman, HighRadius, Druva, and Icertis. Many more are expected by 2025. The Indian SaaS industry has more than 1,000 companies with over 150 companies generating an annual recurring revenue (ARR) of over $1 million. Nasscom said pure-play SaaS firms have the potential to grow to $13-$15 billion in revenue collectively by 2025, from the current $2.5 billion.
Ajay Sawhney, secretary in the IT ministry, said the big impetus was the launch of the national policy on software products last year that laid down many initiatives like the Indian software products registry and model RFP for software products.
Fuelled by an increase in cloud consumption, need for scalability and digital technology adoption, the SaaS industry globally has grown significantly with a market value of $100 billion in 2019. The Americas are the highest SaaS adopters accounting for almost 60% of the market. The US also accounts for more than 70% of global SaaS funding.