The Indian Software-as-a-Service (SaaS) sector is projected to reach US$ 50 billion by 2030, with the potential for further growth due to rapid advancements in artificial intelligence (AI) and its integration into SaaS solutions. According to the report “The Rise of SaaS in India 2024” by Bessemer Venture Partners, the sector is poised for transformation, driven by increased AI adoption, a focus on cybersecurity, and greater cloud utilization in industries like banking, financial services, and manufacturing. The Indian startup ecosystem is expected to attract US$ 1 billion in new venture funding in 2024, a 25% increase from the previous year, with a significant portion aimed at AI-focused companies. Notably, around 60% of previously pure SaaS startups are evolving into AI-enabled providers, marking a significant shift in the industry landscape.
In 2023, Indian SaaS unicorns and centaurs collectively generated US$ 5.9 billion in revenue, with wealth-tech and industrial-tech software emerging as key sectors driven by increased equity participation and a push towards sustainable operations. The report highlights a strong interest in cybersecurity, with 99% of surveyed firms planning to boost their cyber budgets and half expecting 6-15% increases. The cyber insurance market is projected to grow significantly, reaching US$ 800 million by 2030. Partner in Bessemer Venture Partners, Mr. Anant Vidur Puri, emphasizes that alongside AI, cybersecurity, wealth tech, and industrial software will be vital trends for future growth in India. The country boasts a rapidly growing pool of skilled talent in cybersecurity, positioning it well to serve both domestic and global markets.
Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.