Indian SaaS sector to clock $100 bn revenue by 2026: Chiratae-Zinnov study

The country is gearing to supersede China as the second largest SaaS nation in the next few years, the report says

The Indian SaaS industry is set to clock in a massive $100 billion in revenues by 2026. This was underscored by the 2022 edition of the Chiratae-Zinnov India SaaS report titled, “India SaaS - Punching Through the Global Pecking Order.” On the global stage, India is gearing to supersede China as the second largest SaaS nation in the next few years, said the report.

On the back of successful listings, coupled with stronger fundamentals and the path to profitability, are making SaaS companies in India an attractive investment theme. The industry aims to attract a strong private capital infusion of close to $6.5 billion in the coming year alone, up from last year’s $4.2 billion, notes the report.

Sudhir Sethi, Founder and Chairman, Chiratae Ventures, stated, “India is a global SaaS leader with over 35 SaaS companies in our portfolio like Uniphore, which recently raised $400 million, and others like Pixis, Hevo Data, Healthplix, CropIn, Pando, Deepfence, and Squadcast which are valued over $3.5 billion and last year overall raised $600 million. Chiratae predicts that investments in Indian SaaS will continue to grow at a massive pace with the revenue poised to cross $100 billion by 2026.”

Indian SaaS grew at a massive CAGR of aboutr 55 per cent in 2021, with revenues well poised to cross $100 billion by 2026. The report also said the next wave of digital talent is expected from tier-2 and tier-3 cities; a vast pool of over three million digitally skilled workforce will be the perfect munition for SaaS companies to scale up in the coming years.

Pari Natarajan, CEO, Zinnov, said, “2021 was a watershed year for Indian SaaS – including exponential valuations, successful IPO debuts, a vast influx of VC investments, and an unprecedented number of unicorns. In fact, India is fast emerging as a clear leader in SaaS, and will supersede China to become the second largest SaaS nation in the next few years.”