SaaS Founders Head to Silicon Valley to Tap into AI Innovation

As tech startups such as Meesho, Flipkart, Groww, and Razorpay shift their focus back to India, a counter-trend is emerging among SaaS (software-as-a-service) founders.

- S SHANTHI

A growing number of them are moving base to Silicon Valley, citing the need to stay closer to the nerve center of artificial intelligence innovation.

These entrepreneurs are betting that proximity to the Valley's thriving tech ecosystem will be crucial to accelerating their next phase of growth.

Arvind Parthiban, CEO and co-founder of SuperOps, is among them. "For us, it's also about embedding ourselves deeper into the network that powers the future of SaaS. Being on the ground gives us a better pulse on innovation and helps us stay ahead of the curve," he told FE.

The migration comes amid rising concerns that the explosive growth of generative AI (GenAI) could disrupt the trajectory of traditional SaaS players. Industry voices, including Zoho's chief scientist Sridhar Vembu, have warned that the AI boom may erode the competitive edge of Indian SaaS startups.

According to reports, in 2023, more than 40% of all global AI funding was concentrated in the Bay Area, with GenAI startups in the Valley alone raising over $21 billion.

For founders like Parthiban, this makes relocating a logical step. "It's not just about innovation. It's also about access to capital, partnerships, and staying aligned with evolving customer expectations," he said.