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AI boom drives SaaS startups towards vertical offerings
March 17, 2025
|Financial Express Mumbai
THE ARTIFICIAL INTELLIGENCE (AI) boom is reshaping the software-as-a-service (SaaS) industry, pushing companies to shift from broad, cross-industry solutions to domain-specific vertical SaaS offerings.
This transition allows SaaS startups to integrate AI-driven intelligence tailored to meet industry-specific needs, enabling faster adoption and higher returns on investment.
Industry experts say that over 60% of SaaS revenue comes from large enterprises, with global markets driving the demand for vertical SaaS.
Until recently, offering domain-specific solutions was challenging due to technological limitations. However, AI advancements now enable SaaS firms to scale rapidly by selecting industries best suited for tech-driven transformation.
Zoho's new CEO Mani Vembu recently said the company's strategy is to pivot towards domain-specific solutions targeting large enterprises worldwide.
Zoho is focusing on BFSI and healthcare in key markets such as the US, the UK, and West Asia.
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