India's Software-as-a-Service (SaaS) industry's revenue reached 3.5 billion USD as of FY2020, with 75% coming from global sales alone. The confirmation is according to a report published by the Indian IT industry body NASSCOM on Thursday. The study was conducted in collaboration with SaaSBOOMi and Zinnov.
According to the study conducted, India's SaaS industry, which is growing at a compound growth rate of 30 percent, has the potential to grow up to 13-15 billion USD by the year 2025. India's burgeoning start-up landscape, coupled with the rapid strides made towards digital adoption, is critical to the growing SaaS adoption in the country. The Indian SaaS industrial landscape has been clocking a growth rate of around 1.5 times faster than the global SaaS landscape.
Indian pure-play vendors dominate the SaaS market, with the top 5 players accounting for nearly 33 percent of the market shares.
In a statement, NASSCOM President Debjani Ghosh said, "It is phenomenal to see SaaS emerging as a key growth driver for the country. 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". She further added that India, at the moment, needs greater cross-industry collaborations, supportive government policies, and investments in deep technologies to further the growth of the SaaS industry.
At present, the Indian SaaS industry has more than three million software developers and 100,000 SaaS developers. The Indian SaaS industry has more than 1,000 registered companies with over 150 companies generating an annual returning of more than 1 million USD, said the report. Chennai is fast emerging as the "SaaS capital" of the nation, generating over 1 billion USD in revenue – the statement further added.
Propelled by an increase in Cloud consumption, need for scalability, and digital technology adoption, the global SaaS industry has grown profoundly with a market value of $100 billion in 2019. From a geographical perspective, the Americas are the highest SaaS adopters accounting for almost 60 percent of the market and 70 percent of the global SaaS funding.
SaaS is intrinsically a secure and scalable business model. In today's business world, companies are shifting from traditional on-premise solutions to Cloud-based applications. Companies nowadays are spending more on SaaS subscriptions than any other operations. The current crop of Indian SaaS start-ups has the potential to take on the global market head-on. They are very well placed to give India a much larger share of the global SaaS market by 2025.