Indian Software as a Service (SaaS) companies are expexted to command 8% of the global SaaS market, generating $35 billion in annual recurring revenue (ARR) by 2027, growing at 20-25% per annum.
This was revealed by a management consulting firm, Bain & Company in a report titled ‘India SaaS Report 2022 – Remaining steady through turbulence’ on Tuesday.
According to the report, the Indian SaaS companies’ future trajectory remains promising especially as 2022 was another record year for Indian SaaS investments. Investment reached $5.1 billion up about 20% from 2021.
Total annual recurring revenue of $12-13 billion in 2022 was also up four times over the past five years.
The report encapsulates the growing momentum of the SaaS industry in the country despite prevailing market headwinds, driven by the proliferation of new SaaS companies and the increased interest by investors allocating capital to the sector even as global investor sentiment has softened.