According to a report by SaaSBOOMi in association with McKinsey, the Indian Software as a Service (SaaS) industry has the potential to create $1 trillion in value and generate half a million jobs by the year 2030.

The report titled- ‘Shaping India’s SaaS Landscape‘ stated that the global SaaS market is expected to cross $500 billion in revenue by 2025, growing at an annual rate of 18-20%.

With nearly 1,000 funded startups, ten of them being unicorns, the Indian SaaS companies are collectively generating about $2-3 billion in annual revenue, employing 40,000 people, stated the report.

Manav Garg, CEO and Founder of Eka Software Solutions, Founding Partner SaaSBOOMi, said,

“India has an exciting opportunity to propel itself on to the world stage as a SaaS force to be reckoned with. While there are challenges ahead, these are not insurmountable, and SaaSBoomi is of the view that there is nothing that can stop the Indian SaaS community from building on its strong foundation.”

The report added that the Indian startups providing SaaS solutions have the potential to capture about 4-6% of the global market and generate $50-70 billion in annual revenues by 2030.

Indian SaaS startups saw a 4X jump in funding over the last two years, with $1.5 billion funding received in 2020. Additionally, the sector saw the entry of six SaaS startups in the coveted unicorn club amid the pandemic- Postman, Zenoti, Highradius, Chargebee, Innovaccer, and Browserstack.

The report added that the Indian SaaS ecosystem would require collective support from all stakeholders, industry associations, corporates, government, and investors, to reach its potential over the coming years.

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