The Indian SaaS market is expected to triple its current revenue by 2030, driven primarily by the rapid acceleration of AI technology. The latest Bessemer Venture Partners’ analysis indicates that Indian Centaurs—businesses achieving USD 100 million annual recurring revenue (ARR)—and unicorns—companies valued at over USD 1 billion—are expected to add between USD 20 billion and USD 25 billion in new revenue by the end of the decade.
The report mentioned that India’s SaaS industry is on track to attract USD 1 billion in new venture funding in 2024, a 25 per cent increase from 2023. A big portion of this investment will be directed towards AI-focused companies. Indian SaaS unicorns and centaurs alone contributed USD 5.9 billion in revenue during 2023.
The report also found 60 per cent of previously pure SaaS startups have now transitioned into AI-enabled SaaS providers. This transition was reportedly driven by the need for advanced, intelligent solutions that improve business operations and customer experiences.
The integration of AI technologies such as machine learning, natural language processing and advanced analytics into SaaS platforms is creating a wave of innovation, making software more intuitive, adaptive and capable of automating complex tasks.
“We believe AI will be a big boost to this industry by enabling better margins and higher customer value delivery. In addition to AI, we believe cybersecurity, wealth tech, and industrial software are three other key trends that will lead the next leg of software growth in India,” said Anant Vidur Puri, Partner, Bessemer Venture Partners.
India’s Growing Global Stature
India’s dominance in the global professional services market is also expected to grow, increasing its share from 19 per cent to 28 per cent by 2030. This growth will be driven by AI-driven automation and analytics, which are streamlining back-office operations and supporting data-driven decision-making.
AI-first service companies are achieving over 65 per cent gross margins, pointing to the potential for higher profitability and competitive advantage on the global stage.
Cybersecurity
The cybersecurity sector in India is also expected to see rapid expansion, which will be driven by a growing talent pool and increasing investments. The domestic cybersecurity market reached USD 6 billion in 2023, and with 99 per cent of Indian organisations expected to boost their cyber budgets, the demand for robust cybersecurity solutions is growing.
New laws mandating stricter data protection and cybersecurity measures will also help grow this market, as per the report. Additionally, the cyber insurance market has been projected to grow at 50 per cent year-over-year (YoY), touching approximately USD 800 million by 2030.
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