India’s Software as a Service (SaaS) companies are expected to share 8% of the global SaaS market, and reach $35 billion by 2027, despite prevailing market headwinds, report said.
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The industry is growing 20% to 25% per year, driven by proliferation of new SaaS companies and supported by investors who are allocating increased capital to SaaS companies, across stages, according to a report named ‘India SaaS Report 2022 - Remaining steady through turbulence’, by global consultancy Bain & Company, released on Tuesday.
Indian SaaS companies differentiate themselves through product leadership, competitive pricing, consistent service quality and building clear, go-to-market playbooks and are going after, and winning in, global SaaS end-markets. The Indian SaaS ecosystem has now become a global leader behind only the US in scale and maturity, the firm added.
It estimated that investment in India SaaS reached an all-time high of $5.1 billion in 2022.
Investors count DevTools, CRM, and logistics tech among the most exciting sub-sectors.
Indian SaaS companies are expected to see increased spending in segments like security, cloud infrastructure, ERP and SCM, CRM and marketing, analytics and BI, IT operations, HCM, Developer / PLM tools among other categories, the report said.