India’s SaaS revenue touched the $3.5 billion-mark in FY2020: Nasscom report
With the global addressable market for Software-as-a-Service (SaaS) expected to touch the $400 billion-mark by 2025, there is a huge opportunity for India to become the “Global SaaS Hub” and increase its global market share, according to a report.“Growing at 30 per cent CAGR, India’s SaaS revenue has reached $3.5 billion as of FY2020, with 75 per cent of it coming from global sales. Clocking a growth rate of about 1.5 times faster than the global SaaS landscape, top Indian pure-play vendors are dominating the SaaS market, with the top five vendors account for nearly 33 per cent of market share,” a report by National Association of Software and Services Companies (Nasscom) stated. The report was released in partnership with SaaSBOOMi and Zinnov as knowledge partners.Chennai tops the table The Indian SaaS industry currently has more than 1,000 players with over 150 companies generating an Annual Recurring Revenue of more than $1 million. Chennai has emerged the “SaaS capital” of the nation, generating over $1 billion in revenue. India’s top IT services companies are also building products and platforms that leverage the SaaS model, the statement added. Debjani Ghosh, President, Nasscom, said, “ As a technology industry, we have barely scratched the surface when it comes to use cases that can be delivered via SaaS to benefit across sectors. India today needs greater cross-industry collaborations, supportive government policy, and investment in deep technologies, to further the growth of the SaaS industry exponentially.”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. SaaS industry in India has witnessed accelerated growth in the past couple of years, with 75 per cent of the demand for Indian SaaS products coming from overseas markets, it added.“As of 2020, India has seen the growth of six SaaS unicorns and is expected to see the emergence of many more by 2025. The industry is also seeing an increase in investment sentiments from key Indian and global investors. SaaS funding in India has grown by 15 per cent CAGR over the last 3 years,” the statement added.