The software-as-a-service market is one of the fastest-growing segments of the global economy, estimated by Statista to reach $138 billion in 2022. Within that global trend, India seems poised to grow its own SaaS market with even more momentum than others. According to a report by SaaSBoomi and McKinsey, if Indian SaaS companies maintain momentum, they could potentially reach revenues between $50-$70 billion by 2030 and gain control over 4-6% of the global SaaS market. This growth represents a value-creation opportunity for the Indian SaaS market of up to $1 trillion.
The report also identifies a few areas where Indian companies can make improvements to accelerate industry scaling and maintain a growth mindset. For starters, the SaaS ecosystem in India will need three to four-times more external funding, especially for seed and early-stage companies. The report recommends a concerted effort by all stakeholders — investors, corporate enterprises, industry associations, and government — to support next-level growth fundraising. Because SaaS is not a “winner-takes-all” market, the potential for developing billion-dollar businesses is enormous. Additional recommendations include investing more into go-to-market strategy and talent development — including improving education opportunities for India’s future developers.