Indian SaaS Players Set To Clock $35 billion ARR By 2027: Report

Updated on: 24 January 2023 8:21 pm

Last year, the company launched 300 physical centres and planned a $210 million investment

Edtech Decacorn Byju's To Open 300 Physical Coaching Centres Photo: Last year, the company launched 300 physical centres and planned a $210 million investment

Indian software as a start-up (SaaS) players are set to clock $35 billion in annual recurring revenue (ARR) by 2027. This represents a significant increase from the current ARR of around $5 billion, according to a recent report from Bain & Company,

The report attributes this growth to the increasing adoption of digital technologies by businesses of all sizes, as well as the growing number of start-ups entering the SaaS market. Additionally, the report notes that the Indian government's push towards a digital economy has also played a role in this growth.

It predicts that the majority of this growth will come from small and medium-sized enterprises (SMEs), which are expected to account for around 60 per cent of the total ARR. This is due to the fact that SMEs are becoming more digitally savvy and are increasingly turning to SaaS solutions to improve their operations and stay competitive.

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Despite the overall positive outlook, the report also notes that the Indian SaaS market is still relatively immature, and there are a number of challenges that will need to be overcome in order for the sector to reach its full potential. These include a lack of talent, as well as a lack of understanding and knowledge of SaaS solutions among businesses.

However, these challenges can be overcome with the right policies and initiatives, such as creating a more favorable environment for start-ups and investing in the development of talent and skills.

Overall, the report highlights the potential of the Indian SaaS market and the significant growth it is set to experience in the coming years. It is a great time for SaaS companies to tap into this potential and help Indian businesses become more productive and efficient.

Indian SaaS players are set to clock $35 billion ARR by 2027, as per a Bain & Company report in 2022. The growth is driven by the increasing adoption of digital technologies and the support from the Indian government for a digital economy. The majority of this growth will come from small and medium-sized enterprises (SMEs) which are expected to account for around 60 per cent of the total ARR. Despite the challenges, the report states that with the right policies and initiatives, the sector can reach its full potential.