Alternative-financing fintech platform GetVantage has launched its SaaS Accelerator Fund II to help B2B software as a service (SaaS) businesses scale without equity dilution. This new fund is an extension to the company's approximately Rs 65 crore SaaS Accelerator Fund I, which it launched in 2022.
Through its licensed NBFC GetGrowth Capital and partnerships with entities like Varanium's Debt Fund and NBFCs and AIF funds, GetVantage provides financial support to start-ups. Over the past 18 months, it has been focusing on the B2B SaaS sector, utilising the corpus from its initial fund. It made this decision in response to significant interest from numerous SaaS founders seeking financial assistance in the last year and half.
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The SaaS Accelerator Fund II will deploy Rs 250 crore over the next 12-18 months and claims to help SaaS founders with non-dilutive capital to scale their businesses.
GetVantage first launched its SaaS Runway Capital product in 2022 and has since been actively involved as a funding partner to SaaS founders in India. This was even during the Silicon Valley Bank crisis early last year, where SaaS was amongst the primary sectors that were impacted.
According to the company, the SaaS sector continues to see strong 2.5X YoY growth despite formidable economic headwinds. Also, the space witnessed an impressive 96 per cent of unicorns and soonicorns hiring extensively, indicating significant growth in the workforce and the businesses.
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Speaking of the fund, Karun Arya, chief growth officer of GetVantage, said that the Indian SaaS market is expected to clock $20 billion to $25 billion in the next two years. “GetVantage’s SaaS Runway Capital product, launched in 2022 and proven over 18 months, helps SaaS founders supercharge their ARR before their next equity raise. We look forward to supporting more high-potential home-grown SaaS companies with recurring-revenue financing designed to help them scale without diluting equity, ownership, or control,” he added.
In the last couple of years, SaaS businesses have learned to operate efficiently, increasing their scope of profitability and higher gross margins, anywhere around 67 per cent. Alternative Financing platforms aid in boosting these parameters for SaaS businesses.
Venkatesh Peddi, managing director and partner of Chiratae Ventures, said, “The resilience and adaptability of the Indian SaaS industry have positioned it for remarkable growth over the next few years, with a potential surpassing $25 billion by 2026. The recurring nature of revenues and category of digital expenditures present an ideal opportunity for GetVantage to expand its offerings and support for SaaS founders with their SaaS Accelerator Fund II.”
The Indian SaaS market is projected to reach $50 billion in ARR (Annual Recurring Revenue) by 2030, growing multiplefold. This inflection point is a crucial stage for SaaS businesses in the country as the brands are not only receiving more interest, but even the corporate mindset is widening, opening doors for many SaaS platforms to build and innovate.
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In its latest SaaS benchmark report, global alternative-financing platform Capchase suggests how and why SaaS businesses should explore alternative financing Fi options that are cost-effective, non-dilutive, and give access to a line of credit to increase the runway.
Shiyam Sundar, founder of Tripledart, shared, “Having worked with over 100 SaaS companies, understanding their customer acquisition strategies and growth patterns, I am excited about the launch of GetVantage's non-dilutive $30 million SaaS Fund. India boasts nearly 3,500 SaaS companies, with only 80 surpassing $10 million in ARR, growing at an impressive 60 per cent YOY revenue run rate for the past two years. This fund presents a remarkable opportunity for founders seeking a capital infusion without relinquishing equity.”
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Mumbai-based GetVantage secured an NBFC license earlier this year and has facilitated equity-free funding for over 750 companies across 20 sectors.
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