A report by Google and Accel Partners states that Indian SaaS firms will be valued at $50 billion by 2025
March 4, 2016: A joint report released by Google and Accel Partners on Friday outlines the growth opportunity for Indian SaaS (Software as a Service) startups in the global market over the next 10 years. The report states that SaaS products built specifically for particular industries will see hyper growth and adoption by SMBs (small and medium businesses). As a result, Indian SaaS companies will be valued at $50 billion by 2025.
With the demand from SMBs in the US and Europe expected to increase manifold, startups in India have the opportunity to grab 8% of this revenue.
Rajan Anandan, VP and Managing Director, Google Southeast Asia and India, said, “Cloud computing is one of the top technology investment trends of this decade with venture funding for purpose-built SaaS solution exceeding $18b in the last four years.” With mobility becoming a key requirement for SMBs, India has an edge. “Our startups are already building world class solutions for the mobile first users. This strength, combined with easy access to global customer base online, will help India become a very strong player in the global SaaS industry.”
The report says that India has an edge in engineering, inside sales, product management and mobile skillset. This creates a highly advantageous opportunity for India SaaS businesses to be profitable and scale quickly.
Shekhar Kirani, partner at Accel in India, says Indian SaaS startups are already creating world class products. “India is creating these products successfully for global SMB market. With sizeable market opportunity, increasingly high quality entrepreneurs, availability of local talent, favourable units economics and a vibrant VC community in this space, we anticipate several billion dollar companies will be created from India in the next decade,” he said.
The key opportunity areas are customer relationship, data visualisation, human resource management, marketing, healthcare and education.