Indian SaaS Market Will Skyrocket to $50B by 2030: Report This surge is largely driven by advancements in Artificial Intelligence (AI) and its integration into SaaS solutions
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Indian startups are reaching new heights every day, setting new milestones in both local and global markets. Currently, India is the world's most populated country with 1.42 billion people, of which 700 million use smartphones (growing very fast) for personal and professional purposes. The rapid adoption of mobile internet is paving the way for modern startups in India, and Software as a Service (SaaS) is one of the key sectors benefiting from this trend. The Indian SaaS market is expected to generate more annual recurring revenue (ARR) than previously estimated, reaching USD 50 billion by 2030. This surge is largely driven by advancements in Artificial Intelligence (AI) and its integration into SaaS solutions.
According to a report published by Bessemer Venture Partners, 60 per cent of SaaS startups have now evolved into AI-enabled SaaS providers. Additionally, in 2024, India's startup ecosystem is expected to secure USD 1 billion in new venture funding—a 25 per cent increase from 2023, with AI being the major focus.
The report also highlighted that Indian SaaS companies attracted approximately USD 4.8 billion in investments in 2021, a sixfold increase from 2018. Furthermore, since 2021, India has witnessed substantial growth in the number of SaaS unicorns, which has increased from just two companies to twenty. In 2021 alone, 40 per cent of Indian SaaS unicorns were recognized under Cloud 100—indicating the quality and strength of these companies. Data also shows that from 2020 to 2021, the Indian tech market witnessed a 267 per cent increase in the creation of new unicorns.
A few years ago, India had only one or two companies on the unicorn list, but recent years have seen explosive growth in Indian SaaS companies crossing the USD 100 million ARR mark, including Zoho, HighRadius, Druva, Icertis, BrowserStack, Eightfold.ai, BillDesk, and Gainsight.
Additionally, India is witnessing tremendous growth in the number of early-stage companies that surpass USD 10 million in revenue. Six years ago, there were nearly 30 businesses with revenue over USD 10 million; today, that number has surpassed 70.
The Indian cybersecurity market is also experiencing significant growth, projected to reach USD 13.6 billion by 2025, up from USD 6 billion last year because of the increasing cybersecurity threats in the market.
"2024 is the year AI goes mainstream, marking a pivotal shift from emerging technology to a cornerstone of business and industrial operations. AI is the next revolution in software, and we expect all software to transition to AI native, AI enabled, or AI infused in some way over the coming months. India is also in a unique position with its large base of AI developers and global leadership in business and professional services. We believe AI will be a big boost to this industry by enabling better margins and higher customer value delivery," said Anant Vidur Puri, Partner, Bessemer Venture Partners.
