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India’s SaaS market is projected to surpass $50 billion in annual recurring revenue (ARR) by 2030, driven by AI advancements.
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60% of start-ups are evolving into AI-enabled SaaS providers, attracting $1 billion in new venture funding in 2024.
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AI will enable better margins and higher customer value delivery, making India a global leader in AI-enabled SaaS.
AI Fuels India’s SaaS Growth
India’s SaaS market is poised for significant growth, with AI driving the surge. According to Bessemer Venture Partners’ survey, 60% of start-ups are now AI-enabled SaaS providers, attracting substantial venture funding. The report predicts that India’s SaaS market will surpass $50 billion in ARR by 2030, with potential for upward revision.
Rapid AI Adoption
The report highlights the rapid adoption of AI, increasing focus on cybersecurity, and cloud adoption in BFSI and manufacturing industries. Anant Vidur Puri, Partner at Bessemer Venture Partners, notes that AI will transition all software to AI-native, AI-enabled, or AI-infused, making India a global leader in AI-enabled SaaS.
Growth Opportunities
The report recommends early-stage start-ups to balance growth with profitability, as the SaaS market continues to grow. With the emergence of new SaaS unicorns and centaurs, India solidifies its position as a global SaaS hub.
