Indian Software-as-a-Service (SaaS) companies have the potential to grow their revenue six fold to $13-15 billion by 2025, according to a joint report by Nasscom, Sassbhoomi and Zinnov.
The report revealed that India’s SaaS revenue has reached $3.5 billion as of financial year 2020 with compounded annual growth rate of 30 percent and 75 percent of it came from global sales. The report estimates that by 2025, the global addressable market for SaaS will be around $400 billion.
From a geographical point of view, the Americas are the highest SaaS adopters, accounting for almost 60 percent of the market. The US also accounts for more than 70 percent of global SaaS funding, the report said.
The Indian SaaS industry today has more than 1,000 companies, with over 150 companies generating an annual recurring revenue greater than $1 million, it added. Chennai has emerged as the ‘SaaS capital’ of the nation, generating more than $1 billion in revenue.