Mumbai:
With the demand from SMBs in United States projected to
double, and an expected explosion of demand from Europe, Indian Software as a
Servive (SaaS) startups have the opportunity to grab 8pc of $132 billion
revenue by creating purpose built
innovative solutions targeted at SMBs globally.
In a market with demand fulfillment largely led by US, India’s
competitive advantages will help Indian SaaS companies see strong growth and
create $50 Billion in value over the next 10 years, according to a joint report
released by Google & Accel Partners which has outlined the growth
opportunity for Indian Software as a Servive (SaaS) start-ups.
Speaking at the launch of the report, RajanAnandan, VP &
Managing Director, Google Southeast Asia & India said, “Cloud computing is
one of the top technology investment trends of this decade with venture funding
for purpose-built SaaS solution exceeding $18b in the last four years. Indian
startups have an edge, as mobility is also becoming a key requirement by SMBs
for SaaS. Our startups are already building world class solutions for the
mobile first users, this strength combined with easy access to global customer
base online, will help India to become a very strong player in the global SaaS
industry.”
“We’re already seeing many Indian SaaS startups creating
world-class products successfully for global SMB market. With sizable SMB
market opportunity, increasingly high quality entrepreneurs, availability of
local talent, favorable unit economics and a vibrant VC community in this space
we anticipate several billion dollar companies will be create from India in the
next decade.” said, ShekharKirani, Partner at Accel in India.
The report projects that with India’s advantages in
engineering, inside sales, product management and mobile skillset creates a
highly advantageous opportunity for Indian SaaS businesses to be profitable and
scale quickly. By comparing unit economics advantages and current spread of
demand fulfillment, the report outlined Customer Relationship Management, Data
Visualization, Human Resource Management, Marketing, Healthcare and Education
as some key opportunity areas where big global SaaS companies can emerge out of
India.
The search results support the opportunity basis other
inputs. Analyzing the global demand basis the number of searches on Google by
region, US with highest demand at 37%, Europe at 26% , 12% in India and 25% in
the Rest of the World. On the fulfillment side, the report determines the data
by deducing the operating country of the company where the SaaS related
web-traffic lands - US dominated the fulfillment landscape with 70% share of
the total demand fulfillment, Europe with 20% with ROW and India taking 5%
share each.
The Report was compiled by Google & Accel Partners by
combining inputs basis primary interviews with SaaS Indian companies across
segments, Investors in SaaS, SIs and institutes done in the period (Oct-Dec
2015). The report also includes data from Google India primary research for SMB
Consumers targeted to the US conducted in period Jan-Feb 2016) and secondary
Research by Zinnov conducted in India. And benchmark business metrics from
Accel India SaaS portfolio and Google search trends data for the calendar year
2013, 2014 and 2015.
