THE SAAS PLAYBOOK

DESPITE RECENT FUNDING SLOWDOWNS, INDIA'S SAAS MARKET IS EXPECTED TO GROW AT A CAGR OF 15-18% TO SURPASS $50 BILLION IN ANNUAL RECURRING REVENUE BY 2030 AS AI AND GEN AI DRIVE INNOVATION AND INVESTMENTS. WITH A GROWING START-UP ECOSYSTEM, INDIA MAY LEAD ON THIS FRONT

- PALAK AGARWAL

AT YOUR SERVICE

• India's SaaS market is likely to surpass $50 billion in annual recurring revenue by 2030; combination of AI and Gen AI offers a big growth opportunity

• VC investments have slowed in the past two years due to a shift towards fundamental evaluations over market share and Al-driven solutions. But, stakeholders say investments are rising

• VCs are increasingly selective, investing in SaaS companies that leverage AI and have robust business models, while seed investments remain active

• Faster Gen AI integration in SaaS will open up new opportunities, propelling the sector towards real-world problem-solving with advanced AI

FOR MANY BUSINESSES hit hard during the pandemic, SaaS was the knight in shining armour. SaaS, which stands for software-as-a-service, cloud-based with its infrastructure has revolutionised business operations in the past few years.

According to a report by Bessemer Venture Partners, a venture capital firm specialising in technology-led companies, India's SaaS market is on course to surpass $50 billion in annual recurring revenue (ARR)-projected earnings by way of subscriptions by 2030.