Rise of the Indian SaaS Market

SucSEED Indovation Ventures
3 min readJul 28, 2021


Do you think Crypto is the future technology that’s shaping the Indian technology market?


No, Experts think otherwise. India’s Future Technology DNA is expected to be shaped by SaaS aka Software as a Service.

The Indian SaaS Industry has seen a 5X revenue growth and 2x growth in the number of SaaS companies in the past few years

With the increase in digitization and ever-growing reliance on SaaS, the Indian SaaS market is said to reach $1 trillion in value and create five lakh jobs by 2030.

We at SucSEED Ventures provide in-depth insights into the Indian SaaS market in our recent report- “Opportunities in Enterprise SaaS -2021”. Here’s a glimpse of SucSEED’s report on the Indian SaaS ecosystem. The average American enterprise today uses more than 1,000 SaaS products on a semi-regular basis. SaaS is said to be replacing other software segments like ERP, CRM, and point-of-sale (POS) systems.

India has about 15,300+ SaaS startups with more than 8500+ of them funded. The total funding for SaaS is more than 13.4 Billion. Most SaaS companies are in Bangalore trailed by Mumbai and Delhi in second and third place respectively. With a substantial number of exits and Series-A funded companies. (The report talks in detail on stages, major cities, and CAGR growth)

As Sugandh Rakha, Principal Product Manager — SERVICENOW said “The Indian market has seen the rapid adoption of SaaS in the past few years and covid has further accelerated the process and the trend is likely to continue with the growth rate being more than pre-covid times. For Startups to be successful in Tier 2 or Tier 3 cities, hyper-localization and providing a direct value or solution like cost-efficiency or profit optimization is the key.”

Over 150 companies have crossed the $1 million ARR milestone. Freshworks, Druva, and Icertis have already marched beyond the $100 million annual recurring revenue (ARR) barrier. According to other reports, if Indian SaaS providers execute to their full potential, they could generate annual revenues of $50-$70 billion by 2030 and win 4–6% of the global market. Most recently SaaS startup Gumlet raises $1.6M led by Sequoia’s SurgeThe most recent acquisitions such as Impartus by UpGrad (100% for $20.5M), Pharmarock by EQT ventures (91.8% for $15.3M and many more are discussed in SucSEED’s Enterprise SaaS report)

While the report talks about various business models and the total funding, it wouldn’t come as a surprise to know the most funded business model is Salesforce automation’s CRM — Enterprise suite model. The total amount of funding to enterprise SaaS companies increased from $1.3 Billion in 2018 to $2.4B and 2.5B in 2019 and 2020 respectively. Interestingly the number of rounds has reduced while the amount of funding is increasing. The main reason is said to be due to an increase in funding for companies in their later stages and as statistics suggest later stage capital has quadrupled.

Companies like Fareye and Sentieo were funded about $153M and $68.5M respectively by TCV and Ten Coves Capital. SaaS in India has witnessed significant funding traction, surpassing a billion dollars of annual investment in 2019 and in post — covid digitized environment SaaS-based solutions will continue to boost their market share with their features like automatic updates, scalability, and flexible payment plans.

To know more about the recent trends and how hybrid cloud-based SAAS platforms play out in driving business growth, Join our engaging panel discussion on Thursday 29th July 2021 at 11.30 AM IST where we will be in conversation with industry experts and various startup founders to discuss in detail about “Opportunities in Enterprise SaaS -2021”

Registration link: https://zfrmz.com/cfO1Yyg7DXjwEz3AZpgd