The revenues of Indian software product companies are expected to touch $18-20 billion by 2022, doubling their share in the global Software-as-a-Service (SaaS) market to around 7-9%, according to a new report.
This growth of those firms that are based in India or have a majority of their workforce in the country is being driven by significantly lower personnel costs, an abundance of engineering talent, round-the-clock customer service, and a wide acceptance of products built and managed by Indian entrepreneurs, Bain & Company said in its India SaaS Report 2020.
The report found that the number of Indian SaaS companies had doubled to around 7,000-8,000 companies in the last five years, with over 1,200 of them have raised funding.
Investments in SaaS startups in January to June period grew 25% to $830 million. The share of SaaS investments also made up 19% of the $4.4 billion.
Moreover, over 40 Indian SaaS firms have raised late-stage Series C and beyond funding, compared to just 10 such firms five years ago, it found.
“There’s a wide appreciation of Indian-founded companies and the impact they’re having on global SaaS is just phenomenal. We talk about the number of companies having greater than $100 million ARR being 4-5, but I would sense that within a few years we would have two or three that are over $1 billion in revenues,” said Arpan Sheth, Senior Partner at Bain & Company.