As per the report by Bain (a private equity company), Indian SaaS (software-as-a-service) firms are about to reach an ARR (annual revenue run) rate of $35 Billion by the year 2027.
According to Bain & Company’s India SaaS Report 2022, Indian SaaS enterprises have an ARR of $12–13 billion, as of last year and are anticipated to increase at an annualized pace of 20–25% until 2027. This results in a three-fold increase during these five years compared to 2022.
As per reports, it was stated that “Near-term turbulence aside, Indian SaaS remains in its early stages and has proven that it is building world-leading companies across categories.”
US technology-based giants such as Google, Amazon, Meta, Microsoft, etc. are currently experiencing a recession that has resulted in widespread layoffs.
As of now, 14 of the 1,600 SaaS-based businesses in India (those that received funding in the past five years) have annual recurring sales of over $100 million.
As per Aditya Shukla, (partner, Bain & Company), “this number is likely to touch 30-40 in the next three years”.
According to the research, the sector’s optimism is supported by three important factors that provide Indian businesses an edge: attractive pricing, product leadership, and reliable service quality.
According to Shukla, Indian businesses make a profit since they have access to a big pool of talented people in India, who provide back-end services, allowing businesses to provide competitive pricing to their international clients.