NASSCOM Riding the Storm – Towards the Giant India SaaS Opportunity
Blog: NASSCOM Official Blog
“NASSCOM Riding the Storm – Towards the Giant India SaaS Opportunity” underlines the opportunity and whitespaces for the growing Indian SaaS industry. For the first time ever, key stakeholders in the Indian SaaS ecosystem have collaborated to create this research study. The report also highlights how India can become the global hub for SaaS and can tap the huge addressable opportunity by strengthening it ecosystem.
SaaS: The Fastest Growing Software Segment In The World · The Americas are the highest SaaS adopters accounting for ~60% of the market. · The top 5 players account for 51% of market revenues in 2019 · BFSI the highest adopter of SaaS, followed by Retail, Healthcare and Education. Growth Drivers · New business models are emerging within the SaaS landscape leading to further diversification · External trends impacting SaaS – Government initiatives, geo-political events · Technologies such as AI are playing a huge role in SaaS product development
India SaaS Industry: Growing 1.5X Faster Than Global SaaS · Indian SaaS Revenues at $3.5Billion in FY2020, growing at 30% · 1000+ Indian pure play SaaS vendors, with 150+ companies with > $1 Million ARR · Strong funding (15% growth over the last 3 years)
Recommendations: · Strong Government push for procurement of Made In India SaaS products · Robust non-VC funded model required to grow current SaaS industry base by 2-3X · 3-4X annual funding, required to grow India SaaS market to $13-15 Bn