RIDING THE STORM - NIPPnipp.tech/storage/app/file/270720_040309.pdf · 2020. 7. 27. · market share followed by ERP and CCC • SaaS firms accounted for $32 billion funding (2019)

RIDING THE STORM Towards the Giant India SaaS Opportunity | July 2020

2

Debjani GhoshPresident, NASSCOM

The building blocks of a good software product and an ecosystem that works are quite similar- both need different components tocome together and deliver results, no matter how diverse their backgrounds.

Where are the software products? This question has been asked again and again over the past few decades. The foundation ofIndia's SaaS industry has been a combination of software products, platforms, combined with the transcending power of deliveringsoftware from the cloud, from anywhere.

SaaS as a phenomenon has been prevalent for the last 20 years but of late the industry as a whole has started to gain traction andhas an addressable market of $400 billion. The Indian SaaS industry is uniquely positioned to take advantage of this untappedopportunity given the competitive edge it gained organically for a number of reasons - the IT Services boom that lead to thedevelopment of in-depth understanding of technology that goes into building great products, a highly skilled workforce and ofcourse, the English-speaking proposition.

In this report we intend to decode growth for the Indian SaaS industry with recommendations for strategies with focus onproduct, pricing and GTM that could be adopted to help address multiple growth objectives - be it market access, talent,entrepreneurship, intellectual property or situational collaborations. To that end, the recommendations in this report have beencarefully curated with key insights from some of the best brains in the Indian SaaS industry.

As we write this, millions of children are using gamification to learn the concepts in S.T..E.M. (Science, Technology, Electronics,Mathematics), some of the biggest Fortune 500 companies are managing their contracts and making sense of their data,reimagining their supply chains, and so on--all powered by India's SaaS products.

Today India has enough software products that serve as both, role models and as building blocks of a new industry built onproducts that rival the world's best. And, the success of Indian SaaS industry is rooted in how we continue to share, pivot andinnovate which will be key to our ability to build a stronger product nation in the future.

We sincerely hope that the insights from this report prove useful to you and welcome your feedback and comments [email protected]

Manav GargMember of SaaSBOOMi BoardCEO & Founder, Eka Software

Foreword

01 GLOBAL SAAS OVERVIEW

02 SAAS - KEY TRENDS

04 VALUE PROPOSITION OF THE INDIAN SAAS INDUSTRY

05 MARKET OPPORTUNITY ANALYSIS

06 STRATEGY PLAYBOOK

07 OUTLOOK AND RECOMMENDATIONS

03 INDIAN SAAS LANDSCAPE

4

SaaS is a software distribution model, in which third party providers hostapplications on cloud and enable consumers to access it over the internet.

Even though SaaS originated in early 2000, rapid global adoption happened onlyafter the 2009 crisis, as organizations looked to cut software costs. Increasingcloud penetration, need for scalability, and digital technology adoption has todaymade SaaS the fastest growing software segment, generating revenues of $100Billion in 2019.

Key characteristics that define a SaaS model –

Market Landscape

• Global SaaS market stands at $100 billion in 2019growing at 22.6% CAGR

• The Americas: Largest market - ~60% share• Top 5 players - 51% of market revenues in 2019• BFSI, highest adopter of SaaS, followed by Retail,

Healthcare and Education• From a horizontal perspective, CRM has the highest

market share followed by ERP and CCC• SaaS firms accounted for $32 billion funding (2019)• COVID-19 has had variable impact - some segments such

as CCC and Security have seen significant uptick

Note – CCC – Content, Collaboration & Communication, CRM – Customer Relationship Management, ERP – Enterprise Resource Planning

KEY TRENDS

Growth Drivers

OVERVIEW

New Segments

• New business models are emerging within the SaaSlandscape leading to further diversification

• External trends impacting SaaS – Government initiatives,geo-political events

• Technologies such as AI are playing a huge role in SaaSproduct development

• Vertical SaaS - 500+ vertical SaaS companies haveemerged in last decade

• Mobile SaaS – $6 billion standalone market in 2019

• Data driven decisioning driving BI & analytics, whilecybersecurity concerns driving data security SaaS

No hardware & software installation required

AutomaticOver-The-Air(OTA) updates

Flexible payments

Executive Summary (1/4): Global SaaS Overview and Trends

5

• Indian SaaS Revenues at $3.5 Billion in FY2020, growing at 30%

• Global sales accounting for 75% of revenues

• India pure-play SaaS companies generated revenue of $2.5 Billion in FY2020

• Key verticals adopting SaaS: BFSI, Retail & CPG, Healthcare & Wellness

• Diverse India SaaS Player Landscape

• Includes Indian pure-play SaaS vendors, global SaaS companies, and integrated service providers

• 1,000+ Indian pure play SaaS vendors, with 150+ companies with > $1 Million ARR

• 6 Indian SaaS unicorns

• Emergence of new players adopting disruptive strategies and exploring new technologies,geographies, customer segments

• Rapid Maturing Ecosystem

• Strong funding (15% CAGR over the last 3 years) from major VC players

• Valuations of leaders at 8-10X revenue

INDIA SaaS MARKET LANDSCAPE

INDIA SaaS INDUSTRY VALUE PROPOSITION

Large skilled talent pool – 3+ million software developers and 100K+ SaaS developers

Strong ecosystem - 3rd largest start-up base, supportive

Government, associations & accelerators

Test bed for innovation – Huge domestic consumption market

and deep tech adoption

Strong SaaS heritage – Global presence; Experience in BFSI,

Retail, AI/ML, CRM

Executive Summary (2/4): India SaaS Market Overview & Trends

Note – ARR – Annual Recurring Revenue

6

By 2025, $400 billion addressable global opportunity forSaaS, driven by growth in new, untapped markets:

• Core Market Growth

• The core SaaS market, driven by America and BFSI, willcontinue to grow by $240 billion by 2025

• New Geographies to Weigh In

• Middle East, South East Asia and Africa to see rise in SaaSadoption and add $20-25 billion opportunity in 5 years

• New Verticals to Add to Addressable Opportunity

• Rise in deep tech adoption & digitization to aid SaaSpenetrate into newer industries such as Energy & Utilities,TMT, Sports- ~$15 billion opportunity

• New Segments & Horizontals Impact

• Customer segments like SMBs are showing traction interms of SaaS adoption and can generate an addressableopportunity of $5-10 billion by 2025

• Rise in digitization and dependence on data will ensurethe rise in adoption of Data Analytics & Security adding$10-15 billion opportunity by 2025

Indian SaaS companies need to have a strategy that is a combinationof product, price, GTM which solves multiple purposes

• Ensuring Business Continuity During Times Of Crisis

• Evaluate partnerships and engage with ecosystems

• Create flexible pricing and invest in sales and marketing

• Look for inorganic growth, drive thought leadership & employeeengagement

• Enhancing Its Existing Value Proposition

• Build domain expertise and product enhancements

• Leverage digital to build automated, user friendly products

• Build domain specific innovation centres and develop multi-lingualcapabilities

• Utilizing Emerging Opportunities

• Identify growth opportunities and customize GTM strategies

• Drive innovation and comprehensive product strategy

MARKET OPPORTUNITY STRATEGY PLAYBOOK FOR INDIA SaaS

Executive Summary (3/4): Market Opportunity & Strategy Playbook

7

By 2025, pure-play India SaaS industry has the potential to grow 6X to $13-15 Billion - The entire Indian SaaS ecosystem (Industry,

Government, Academia, Accelerators, Associations and Think-tanks) has a key role to play for India to realize this potential

Shaping Next Gen SaaS

Companies

Government and MSME as SaaS

adopters

Strong Funding

Pipeline

• Strong Government push for procurement of Made In India SaaS products

• Digital transformation of MSMEs through Indian SaaS

• 3-4X annual funding, required to grow India SaaS market by 6X

• Access to India domestic capital

• Short term financial support to maintain business continuity in the short-term

• Robust non-VC funded model required to grow current SaaS industry base by 2-3X

• Government can dedicate 30-40% of the Fund of Funds for start-ups to promote entrepreneurship in SaaS

• Create awareness among start-ups to develop and register Intellectual Property (IP) as a requisite item

Build the SaaS India Brand

• Build Brand India for SaaS through marketing, visibility and trust

• Promote tier-II/III and non-metro locations to develop SaaS companies in India; develop SaaS to be geo-agnostic solutions provider

Create Skilled Talent

• Focus on building SaaS skillsets and a effective Industry mentorship program

• Increase focus on Design Thinking, product management in academics and enterprises

Executive Summary (4/4): Recommendations

8

Global SaaS OverviewKEY HIGHLIGHTS

• Global SaaS market size (2019) stands at $100 Billion with 12,000+ SaaS companies

• The SaaS landscape includes a healthy mix of traditional product companies and native SaaS companies

• The top 5 players - Microsoft, Salesforce, Adobe, Oracle and SAP account for more than 50% of the total SaaS market in 2019

• The Americas are the current SaaS market leaders with market size of $58.3 Billion as of 2019 with 16% YoY growth

• CRM has the highest market share (25%) among horizontals as of 2019

• Among industries, SaaS spend has been highest in BFSI

• Significant VC interest in SaaS- $32 Billion funding in 2019 itself

9

Emergence of Application Service Providers was the first step in the evolution of the $100 billion SaaS industry

Source – Gartner, IDC, NASSCOM Cloud report, ZDNet, Accel Euroscape, Company Website

Note – Company logos are mentioned in the years they were founded

0

20

40

60

80

100

120

140

1960 1980 1990 1995 1998 1999 2001 2010 2018 2019 2022

Rev

enu

e ($

bill

ion

)

Precursor to remote data storage - Emergence of Dumb Terminals

Evolution of remote data storage – Data was now being accessed through LAN

Accessing remotely stored data over the internet - Emergence of Application Service Providers (ASP’s) : Single Tenant Infrastructure model

Emergence of the multi-tenant model – First multi-tenant application was developed

Emergence of the SaaS model –Concur became the first company to adopt the SaaS model

SaaS industry estimated to grow at

a CAGR of 22.6% to

reach $133 billion by 2021

2014 - SAP acquired Concur

2013 - SaaS seed funding exceeded $1 billion for

the first time

PE acquisitions in SaaS constitute 2.5% of all

PE acquisitions (0% in 2000)

• Current market size - $100 billion• 66 publicly traded SaaS companies

(21 in 2009)

2004 - Gmail

was launched

1997 – Yahoo Mail

was launched2012 - Adobe Creative Cloud was launched , allowing

users to purchase monthly subscriptions of Adobe software

2011 - Microsoft 365 was launched as a SaaS suite

Note - All years are calendar years

Global SaaS Overview Global Key Trends Indian SaaS Market Landscape The India SaaS Value Proposition

Market Opportunity Analysis India Strategy Playbook Outlook and Recommendations

10

While cloud consumption & scalability were early growth factors, SaaS is currently being driven by rise in Deep tech adoption

Source – FinancesOnline, Zinnov Analysisi, NASSCOM

*These are trends brought about by the Covid 19 pandemic .

• Increased cloud mobile consumption (e.g. Mobster, Birst)

• Increased business agility & scalability

• High developer involvement in SaaS buying decision in companies

• Rise of vertical based SaaS solutions to solve specific problems

2019 2018

20172015 2016

• Faster integration with client system & other 3rd party applications

• Increased focus on User Experience

• Need for value-based pricing• Increased focus on data security• Launch of 5G

• Vendor ability to add features remotely • Saving on storage space & cost• Unbundling of SaaS products

2020*

• Need for digital working solutions –Collaboration solutions such as video conferencing

• Rise in demand for deep tech – AI/ML,IOT and digital solutions e.g. digital payments




11

Global SaaS market growing at CAGR ~23% and to reach $133 billion by 2021

Source- Gartner, Zinnov Analysis

Note – 1. Others include manufacturing, travel & hospitality, logistics, etc. 2. Others include security, BPM 3. CCC– Content, Collaboration & Communication. All years are calendar years

1002019

58.82017

1332021

CAGR-22.6%

Major SaaS Segments Global SaaS Market

($ billion)

Retail & CPGBFSIHealthcare &

WellnessEducation

Ve

rtic

alH

ori

zon

tal

ERPCRM BI & Analytics SCMHCMCCC3



4%8%9%22%23%25%

Market Share (2019)

8-10%10-15%10 -15%15-20%

Others1

30-40%

Others2

9%

Illustrative

Market Share (2019)

12

Among geographies, Americas has been leading the SaaS market for the last 2 years…

Source: NASSCOM Cloud Report, IDC, Zinnov Analysis

Note: * Companies with headquarters in the specific region . EHRM – Electronic Health Record Management. Fujitsu SaaS product – ERP, CRM , BI . All years are calendar years

AmericasKey regions –USA, Canada, Brazil

EMEAKey regions –UK, Germany, Russia

Asia PacificKey regions – Japan, India, China, Australia

• EHRM*

• Financial management

• Sales tracking

• Office collaboration

• Data security

• Analytics

• Project management

• SCM• Project management

• Inventory management

• Office collaboration

• Sales tracking

Key Regions& SaaS market Size ($ billion)

Key Areas of Implementation

Local Companies*



9.8

11.4

2018 2019

26.1

30.0

2018 2019

50.3

58.3

2018 2019

13

…while CRM is the leader among horizontal solutions in terms of market share

Source –Gartner, IDC, MarketWatch,, Zinnov Analysis,

CRM – Customer Relationship management, ERP – Enterprise Resource Planning, CCC – Content Collaboration & Communication, BPM – Business Process Management, HCM- Human Capital Management, HRM – Human Resource Management

Workload Market Split

• Rise in use of mobile CRM (YoY Growth - 11% - 2019)

• CRM is among the fastest growing segments (18% in the last 5 years)

• Emergence of big data (YOY Growth -~19% - 2019)

• Emergence of APIs in integrating advanced analytics in BI systems

• Rising number of cyber attacks is driving demand for SaaS based security solutions

• Other factors include rise in digital transactions and the implementation of data security laws in certain countries

• Rise of BYOD, need for real-time synchronization has been driving demand

• COVID-19 pandemic driving demand for digital workplace solutions such as video conferencing, IM

Key Trends/Highlights

CRM BI & Analytics

SECURITY CCC

Rise of mobile CRM and the need to ensure GDPR compliance is driving the growth of CRM



3%

4%

6%

8%

9%

22%

23%

25%

4%

3%

9%

9%

7%

20%

24%

24%

SCM

SECURITY

BPM

HRM/HCM

ANALYTICS & BI

CCC

ERP

CRM

2015 2019

14

Traditional product companies have successfully migrated to SaaS…

Source – Zinnov Analysis, Company Websites



1972 1975 19771911 1981

198919992003

1982

200520072009

2011 2012 2015

IBM public cloud offering, SmartCloudEnterprise, was launched

Microsoft 365 launched as a SaaS suite

SAGE One launched as a SaaS offering for SMBs

Adobe Creative Cloud was launched, allowing users to purchase monthly subscriptions of Adobe software

• SAP Cloud Platform was launched• SAP acquired SuccessFactors for $3.4

billion

Oracle Cloud was launched

Citrix Cloud developed & released by Citrix Systems

Current SaaS Ecosystem (2020)

Traditional product company Native SaaS company Company founding year

Illustrative

15

…and are growing strongly with >35% market share

Source: Zinnov Analysis, KPMG, Primary Interactions

Competitive Edge Business Strategy

Market Experience

Brand Equity

Existing customer base

First mover advantage

Flexibility & scalability

Absence of legacyrelated issues

Legend: Native SaaS companiesTraditional Product Companies

Investment in Sales &Marketing

Strategic acquisitions

Co-marketing

Geography focusedsales teams

Focus on R&D andProduct Development

Product focused GTMStrategy

Omni Channel Presence

Unorthodox hiringstrategies

Success

35%+

3.5x

Combined market share of top 4 companies (Microsoft, Oracle, SAP, Adobe)

Increase in shareholder value for Adobe after transitioning to SaaS

61%Growth for HubSpot between 2009- 2014

8 months

For Slack to reach $1 Billion valuation

Traditional Product Based Companies

Native SaaS Companies



16

Top 5 SaaS vendors constitute half the market size…

Source: Zinnov Analysis, Synergy Research, Deloitte, Gartner

As of 2019, the top 5 vendors account for 51% of the total market

27%

22%17%

12%

10%

6%6%

Next 10 (27%)

N

Rest (22%)




17

…who are actively looking to enhance their offerings through strategic partnerships/acquisitions

Source: Zinnov Analysis, Company Websites, Synergy Research, Gartner

2015 2016 2017 2018 2019

13.5 15 18 17.5 17

14.5 14 12 12.5 12

9 9 7 9.5 10

6 7 5 6.5 6

5 4 5 7 6

Market share (%)

SaaS – led initiatives (last 5 years)

• Key Acquisitions - Linkedin (2016)• Partnered with Adobe to use Adobe

Marketing Cloud as its marketing service for Dynamics 365

Partnered with Microsoft to use Azure as its cloud platform

Key Acquisitions - Mulesoft (2018) & Tableau (2019)

• Key Acquisitions - Netsuite (2016)• Partnered with Linkedin to allow customers to import profile

information on to Oracle HCM

Key Acquisitions - Qualtrics (2018)

31.4 48.2 58.8 85.7 100Market size($ billion)

Microsoft’s acquisition of Linkedin & cloud partnership with Adobe enabled it to overtake Salesforce as the market leader in SaaS




18

Among industries, SaaS adoption has been the highest in BFSI…

Source: Deloitte, Gartner, NASSCOM

Software & Services spend account for the spend on enterprise software products and IT services. All years are calendar years

35

28%

52.3

28%

40

25%

21

26%SaaS penetration(% share of software & services)

Software & Services spend($ Billion)

Retail& CPG

BFSI Healthcare & Wellness

Education



2019

19

…which can be attributed to the rise of open banking and VC interest

Industry size

$28.8 trillion

Software & Services spend

SaaS as a % of Software & services

$52.3billion 28%

Industry size Software & Services spend


$34.6 trillion

$35billion 28%

Evaluate solvency & reliability of potential borrowers using statistical methods of analysis of historical data

Credit Score Analysis Loan Process Automation

Fraud Detection Customer on-boarding

Verify customer identities and mitigate fraud risk through credit data, internal data sources, and other enhanced data

Use of AI to analyze historical data and detect insurance fraudamong claims

SaaS solution offering customer – on-boarding, account origination for all banking verticals (SMB, LE, retail)

20

19

Retail & CPGBFSI

Point of sale Order tracking

Integrated POS solution which syncs all channels (physical, ecommerce) with a central system (existing inventory, customer profiles, order management)

Enables management of orders, 3rd party logistics providers, tracking of shipments and generating purchase orders

Inventory management Ecommerce

Enables inventory tracking at a warehouse level and also provides stock-out notifications to employees

Solution which is used for adding new functionality, and discarding obsolete features to existing ecommerce websites

Key

are

as o

f im

ple

me

nta

tio

nGlobal SaaS Overview Global Key Trends Indian SaaS Market Landscape The India SaaS Value

PropositionMarket Opportunity Analysis India Strategy Playbook Outlook and Recommendations

Note - All years are calendar years Source: NASSCOM Cloud Report, Company Websites

20

Government and VC support have been key drivers behind the growth of SaaS in Education & Healthcare

Industry size

$8.6 trillion



$40billion 25%



$6trillion

$21billion 26%

Facilitates communication & sharing of information, supervision and evaluation of staff performance, real-time monitoring of costs, services, etc

Electronic Healthcare Record Maintenance Appointment Scheduling

Patient Monitoring Patient Engagement

Shows an appointment calendar suitable for one reservation at a timeAdds a grid to indicate time periods that are available

Launched Covid-19 Compass enabling healthcare enterprises to remotely track the health of research subjects who may have been exposed to Covid-19

Solution to enable patients and doctors to interact with each other, allowing doctors to remind patients about medicines, course of treatment & answer queries

Accessing learning materials

Student Information Management

Enables teachers to upload learning material (videos and documents) which can be accessed from any point

ERP system for student record management for colleges & schools

Tracking Expenses Classroom Management

A fund accounting system used to maintain chart of accounts, student fees and payments

Monitor & engage with students in the classroom (websites used, pushing websites to the student’s screen, clearing doubts by messaging)

EducationHealthcare & Wellness

Key

are

as o

f im

ple

me

nta

tio




20

19

Source: NASSCOM Cloud Report, Company Websites

21

SaaS is being adopted across other verticals as well

Source: NASSCOM Cloud Report, Company Websites, Zinnov Analysis

Allows agents & distributors to sell bookings for buses, trains, flights etc.

Travel Booking Front Desk Management

Process Monitoring Employee Management

Allows hotels to manage all front desk activities such as booking management, check-ins , check-outs etc.

Enables manufacturing companies to collect data from the shop floor on a real time process

ERP Solution allows manufacturers to coordinate and manage their teams

Vehicle tracking Route Optimization

Freight forwarding Solution enables clients to monitor and track cargo carriers

Solution determines optimal routes for vehicles based on the drop off locations

Digital Rights ManagementDigital Asset Management

(DAM)

Companies can protect copyrights for digital media

DAM Solution automates the management of images and other non-textual materials

LogisticsTravel & Hospitality

Key

are

as o

f im

ple

me

nta

tio



Manufacturing Media & Entertainment

22

Significant VC interest in SaaS indicated by the $32 billion investment in 2019

Source: Zinnov Analysis, Accel, Euroscape, Software Equity Group, Crunchbase, Company websites

Key Deals (2019)

$400 million series F funding $4.2 million series A funding

71%

6%

USA

Rest of the world

Key highlights

Major Investors

Deals worth over $100 million in the US

20+

Growth in funding 2019 over 2015

2.5x

Funding in Japan in 2018(highest for last 10 years

$230 million

Americas

Europe

APAC

US based SaaS companies have accounted for 70%+ of global SaaS funding



3%

India

Europe20%

23

SaaS: Key TrendsGrowth drivers• New business models are emerging within the SaaS landscape

leading to further diversification• SaaS market has also been impacted by external trends –

government initiatives, geopolitical events• AI proving to be a key component of SaaS with AI-as-a-Service

accounting for almost 3% of the total SaaS market

New Segments• Vertical SaaS has been growing backed by VC support, strategic

partnerships and domain expertise• Mobile SaaS has evolved to become a standalone offering with

a current market size of $6 billion• Adoption of data-driven decision making is driving the growth

of BI & Analytics• Rise in cyber attacks and digital transactions is driving the

growth for data security solutions

Rise of the SaaS unicorns• 100+ unicorns till date

COVID-19 Pandemic• Has had mixed impact on the industry- SaaS companies are

adapting quickly

24

Multiple government bodies are promoting SaaS adoption within industries and within their own departments

Source: Zinnov AnalysisLegend: NegativePositive

2010 2015 2020

Government support for digital technologies

Increase SaaS & other digital technology adoption within government bodies

Support for tech companies & start-ups

Developing digital talent within the country

Incentivized healthcare providers to adopt Electronic Health Records

Granted authorization to SaaS vendors to sell their products to government bodies

Deploying Ai/ML within government departments for Tax Assessment

Partnered with financial institutions to launch a fintech incubation platform

$15 billion Investment in improving digital infrastructure

Promotion of use of digital tools within educational institutions

Paid for its citizens to get certified in AWS

Launched an academy to get university students & teachers trained in AI/ML

Greater probability for SaaS development and adoption within industries

Greater probability for SaaS companies to win government contracts

SaaS companies are getting funding & infrastructure support

SaaS companies now have a large digital talent pool to choose from

Initiatives Impact on SaaS

Taxation & other RegulationsSelling SaaS globally is now an issue

EU introduced VAT Moss which requires tax to be charged in the country where the client in based

Non - US companies will be charged sales tax above a certain threshold

Other Geo-political eventsUS based SaaS companies are facing infrastructure issues

US Tariffs on Chinese computing equipment have directly impacted the US cloud computing market

EU members are enforcing local data protection laws like GDPR e.g. France imposing a $57 million fine on Google

OECD countries came together to support a global governance framework to promote AI



Growth drivers New segments Rise of SaaS unicorns Covid -19 Pandemic

25

Emergence of hybrid business models has led to further diversification of SaaS

Source: Medium, Finances Online

API adoption and a need for customized offerings has led to the emergence of new SaaS business models



2010 2015 2020

These companies offer APIs which enable developers to build core features of their product such as payment processing, sending emails, etc.

These companies offer SaaS packaged as an API instead of a traditional finished product enabling users to build their own UX

Offer products as an extension to existing SaaS products and are run by a single person or a small team within a niche market

API led SaaS

Unbundled SaaS

Micro SaaS

Growth for Zapier in last 5 years to a current ARR of $50 million

50%+

$250+ million

Valuation for Clearbit within 5 years of inception

50%+

Growth for Storemapper since inception to earn $600K+ in ARR

currently with a team of 5


26

Need for data-driven decision making is driving the growth of BI and Analytics

Source: Forbes, Gartner, Zinnov Analysis, Company Website



~92019

~7.52017

~112021

CAGR-~9.5%Growth Drivers

Greater penetration within an organization

Emergence of vertical specific solutions

Rise of Digital Technology

• BI & Analytics is being used in all departments in an organization

• Executive management is one of the largest adopters (replacing operations division)

• Critical decisions are now mandatorily data-driven

• Emergence of multiple companies with vertical specific analytics solutions E.g. Bizom (Retail), Flatiron Health (Healthcare)

The rise of digital technology has led to

• The development of advanced BI & Analytic tools (through APIs & AI)

• Emergence of a greater volume of data through IoT – both structured & unstructured

$1.9 billion

Valuation in 7 years and currently operating at a $100M ARR

70%+

Growth between 2015-17, unicorn in 2018

Recent success stories


Global SaaS BI & Analytics Market($ billion)

27

Rise in cyber attacks and digital transactions is driving the growth for data security solutions

Source: Forbes, Gartner, Company Website, DSCO cyber security report, Zinnov



~42019

~2.52017

~6.42021

CAGR-~26.7% Growth Drivers

Rise in cyber attacks

Introduction of GDPR & other data security laws

Rise in digital transactions

• Countries in the EU and certain areas in the Americas have introduced and are implementing strict data security laws

• Digital payments’ transaction value in India will grow at a CAGR of 20.2% from $64.8 billion in 2019 to $135.2 billion in 2023

50%

Growth leading up to its $1 billion valuation

100%+

Growth for 5 years since its inception in 2009

Recent success stories

• Overall rise in cyber attacks since 2018 – 10%+

• Companies, government bodies etc. have been victims of cyber attacks

Adoption of AI

• Data Security companies have started adopting AI to identify patterns and thereby enhance their offerings


Global SaaS Security Market($ billion)

28

Mobile – SaaS has evolved from a product extension to a standalone offering with a market size of $6 billion

Source: Zinnov Analysis, Medium, Finances Online, Company Website, MarketWatch

Companies started launching mobile SDKs/Plugins

Use of progressive web applications along with native applications in delivering SaaS mobile offerings

Leading SaaS vendors. developed lite mobile SaaS products with advanced AI/ML functionalities

Emergence of new mobile – only SaaS startups

Development of mobile SaaS applications with basic functionalities in areas such as productivity , CCC etc.

Mobile – SaaS Market($ billion)

2010

2015

2020

Mobile plugins for SaaS

Launch of native mobile SaaS applications

Use of PWAs

Mobile – only mindset

CAGR -11%

Launch of advanced native mobile SaaS applications




4.9

6.0

7.4

2017 2019 2021

29

Vertical SaaS companies have shown significant growth over the years

Source: Zinnov Analysis, Medium, Finances Online, Company Website, Vista Equity

Domain Expertise

VC support

Strategic partnerships

50%VC SaaS funding in 2016

went to Vertical SaaS companies

Was founded and built by dentists

Low Customer Acquisition Cost

1/8th

Vertical SaaS CAC is 1/8th that of horizontal SaaS CAC

Leading healthcare SAAS companies partnered with

15+ companies (last 3 years)

Strong VC backing and domain expertise in niche markets are key factors behind the growth of Vertical SaaS

15+



500+ Vertical SaaS companies have emerged in the last 10 years

Of the Life Sciences CRM market attained by Veeva within 8 years of inception

60% 15+ Vertical SaaS soonicorns to turn unicorn by 2025

Key Figures

Rise of Vertical SaaS

~30%+

growth in last 3 years

~20%+~50%+YOY growth in last 5 years

~20%+

YOY growth in last 5 years growth in last 3 yearsSuccess Stories


30

Artificial Intelligence is proving to be a key component of SaaS feature enhancement

Source: NASSCOM Analysis, MarketWatch, Company Websites

AIaaS refers to AI products being sold in as a service model. All years are calendar years

2019 2021

~2.7% ~3.7%AIaaS as a % of SaaS

AI Impact on SaaS

Personalization

Increased Internal Efficiency

Enhanced Security

Automation

Exploring New Use Cases

Automate internal functions like code deployment , use case identification etc.

Analyze customer behavior and enable companies to create personalized user interfaces

AI Penetration in SaaS

2017

~2.5%

Partnered with Cambridge to develop an AI Algorithm to develop code for specific problems

Used AI to support its SaaS product with automated threat detection

Augment SaaS security measures through automated threat detection and remediation

Einstein AI analyses customer behavior to deliver personalized content / services

Used AI to automate several functions within its document management system

Automate more functions within a product/offering such as customer service, document management etc.

New AI+SaaS startups are penetrating new verticals and exploring new use cases such as energy efficiency tracking, audit management.

Caters to utility companies and uses AI to track energy usage

Feature addition

Uses AI to recognize people in a meeting and detect background noise

Addition of complementary features to existing offerings/products




31

SaaS startups are scaling rapidly and now constitute over 20% of the global unicorn base

Source: Zinnov Analysis, Blogspot, Tracxn, Medium, CB Insights

Note – Start-up cohort -2009-2019. Global Unicorn base – 479 unicorns

Strategies (for SaaS unicorns)

• Understood how customers use & interact with their product and built their GTM strategy on that

• Directly marketing their products to developers

• 55% of their $100k+ customers started with a free host session

• Use of Billboards• Partnering with the NBA team – Golden

State Warriors to advertise during their games

• Open source community with more than 2,000 members who can comment and contribute to the code

• The open source project was used in bringing customers

• Partnered with Google & AliBaba to add deployment options for cloud based products

• ~340 employees in sales & marketing (~280 in R&D)

• 24X7 support distributed across 23 countries

Product focused GTM Selling directly to BU stakeholders

Freemium models Aggressive brand building strategies

Open source community Less focus on building a Sales team

Strategic partnerships with tech giants Focus on sales & marketing and support

SaaS start-ups are growing due to their focus on enhancing their offerings through active customer involvement & partnerships

100+Number of SaaS unicorns - 2019

Average time to $5 million ARR

(in years)3-4


(in years)2-3


(in years)10

Key Figures (for SaaS unicorns)



2015 - 40+ 2017 - 60+


32

SaaS companies are adapting quickly to ensure business continuity despite the widespread impact of COVID-19

Source: Zinnov Analysis

Note - Based on stock market performance/ analyst reports

Strategies to combat Covid-19 Covid-19 impact on SaaS*

CCC

Security

BI & Data Analytics

ERP

CRM

SCM

NEGATIVE IMPACT NEGLIGIBLE IMPACT POSITIVE IMPACT


Rise in digital adoption will ensure that the SaaS industry will thrive in the post Covid era

Free Product Trials

Offer free trials for certain products (SMB, healthcare ) for a period of 90

days

Ecosystem Collaboration

Partnered to provide customers with Salesforce Care packages along with

Amazon Connect the cloud-based contact center service from AWS

Digital Market Visibility Programs

Cisco Live, company’s flagship event relaunched as a digital event with

remote participation

Product Innovation

Development of contactless biometric solutions (retina and facial recognition)

to avoid spread of coronavirus

Continued Support

Technical Support Services continue to be operational for customers during

the COVID-19 pandemic



33

Indian SaaS Market LandscapeIndia SaaS industry generated revenues of $3.5 Billion in FY2020. This includes pure-play SaaS companies, global SaaS vendors and Indian service providers.

Chennai has emerged as the “SaaS capital” (generating $1+ billion in revenue) due to the presence of leading SaaS providers and academic institutions.

KEY HIGHLIGHTS

• India pure-play SaaS companies generated revenues of $2.5 Billion in FY2020

• Indian SaaS industry has 1,000+ companies with 150+ companies generating an ARR > $1 million

• India has 6 SaaS unicorns till date• 75% of the demand for Indian SaaS products comes from

overseas• BFSI has the highest SaaS spend among industries• SaaS funding in India has grown at a CAGR 15% over the last 3

years

34

India SaaS has a global focused revenue with 75% from global sales

Source: NASSCOM

Note – Pure play companies refer to Indian SaaS companies e.g. Zoho. Global SaaS refers to global SaaS players selling SaaS products in India. ISPs refer to Indian service providers developing and selling SaaS Products

3.5FY2020

2.1FY2018

Indian SaaS Revenue($ billion)



CAGR-30%

Domestic21%

Exports 79%

Domestic25%

Exports 75%

70-72%

16-18%

10-12%

Pureplay Global SaaS ISP

~4

~4

~30

700+

10 - 50

<1

50 - 100

100 - 500

~122

1 - 10

Indian SaaS industry seeing 150+ local companies generating an ARR > $1 million

Number of players

ARR($ million)

Illustrative

http://www.eka1.com/


35

Diverse and varied India SaaS Landscape…

Note: This covers pure-play SaaS firms

1. Other verticals include manufacturing, TMT

ERP

CRM

BI & Analytics

SCMHCM

CCC

Others

Retail & CPGBFSIHealthcare &

WellnessEducation

Verticals

Others1Travel & Hospitality

Logistics

KEY VERTICALS

Horizontals



Source: NASSCOM

Illustrative





36

…with the leading vendors generating more than $1 billion in revenue

Source: Zoho, Freshworks, Kissflow, OrangeScape, Chargebee, Capillary

• CRM• Email & Collaboration• HRM• Analytics• Accounting

• Sales CRM• Email & Collaboration• ITSM• Project Management

• Data protection & security• Data storage & Management

• Contract management software

Other key vendors

• Revenue : $350 – 400+ million (2019)

• 50%+ sales from US SMBs

• 50+ million users in 180+ countries

• Valuation : $3.5 billion (2019)

• ARR (2018) : $100+ million

• 60% revenue from SMBs

• 40% sales come from US & UK

• ARR (2019) : $100 million

• $1+ billion valuation achieved in 2019

• 1,500+ customers across 46 countries

Key Offerings Key Figures Key Offerings Key Figures

Key Offerings Key Figures Key Offerings Key Figures



• ARR (2019) : $100 million

• $1+ billion valuation achieved in 2019

• Clients include 5 of the top 7 pharmaceutical companies

Illustrative

37

Leading IT services companies are also now part of the Indian SaaS ecosystem

Source: NASSCOM Analysis, Company Website

1945 1968 1976 1981

20152016

TCS launched Digitate, a company meant for its AI SaaS product - Ignio

Partnered with IBM to design and develop software products on existing IBM platforms

Company founding year

• Infosys launched Finacle as a SaaS offering for US banks

• Infosys acquired SaaS automation company Panaya



Wipro invested and collaborated with multiple SaaS startups – Drivestream, Apptus

Wipro launched Holmes and its MFTaaS SaaS solution

2020

Announced SaaS based version of entire Ignio software suite

2020

Launched Office Shifts, smart office technology software to maximize the utilization of office space for

employees in a post-Covid-19 world

Launched SaaS delivery platform AGORA

2017

38

The industry is also seeing the emergence of a few disruptive players…

Source: Zinnov Analysis, LiveMint, Company websites, Inc 42, Economic Times

Founded - 2018

Key Offering - A B2B app that helps traditional businesses (“Kirana stores”) automate their ledger process

Key Numbers

Users onboarded within 1st

year

Growth in Transaction value (2019)

Total funding till

date

Founded - 2018

Key Offering - AI-powered computer vision SaaS product that helps hospitality, food, retail & manufacturing businesses monitor operations and detect anomalies.

Key Numbers

Installations% Growth in ARR (2019)

Fundingrounds till

date (amount undisclosed)

5 mn. ~4X $29 mn. 2,000+ 70 2

Founded - 2012

Key Offering – A location-based online platform that helps SMBs in developing an online presence and gain customer traction

Key Numbers

SMBs onboarded

% Growth in ARR (2018)

Total funding till

date

130K+ 80 $17.7 mn.

…exploring new technologies, customer segments & geographies



Disruptive factor – New segments Disruptive factor – New technology Disruptive factor – New geographies

Targeting the unorganized retail sector in India

Developing a computer vision enabled SaaS offering

Gained traction in relatively new geographies e.g. Kenya

Founded - 2004

Key Offering – Cloud platform for digital acceleration of the entire value chain from trading, supply chain & logistics and financial management

Disruptive factor – New technology

Targeting the Global mid to large enterprises in trading and distribution businesses

Key Numbers

Global large

enterprises

Growth in cloud

revenues YoY

Run rate ARR

100+ Client ~40% $22-25 mn.

Illustrative



39

….and a few new unicorns

Founded - 2006

Key Offering - AI based SaaS Fintech software which offer treasury management and cash receivables management

Key Numbers

Founded - 2018

Key Offering - AI-powered computer vision SaaS product that helps hospitality, food, retail & manufacturing businesses monitor operations and detect anomalies.

Key Numbers

Both HighRadius and Postman become unicorns in 2020



Disruptive factor – New technology Disruptive factor – New technology

Cumulative funding over 3

rounds

$175 mn.

Current YOY growth

70-75%

Clients within the Fortune 1000 group

200+

Current Valuation

$1 bn.

Cumulative funding over 4

rounds

$208 mn.

Revenue -2019 (CY)

$40 mn.

Clients across the world

200,000+

Years to reach $1 billion

valuation (fastest Indian unicorn to

do so)

6

Source: Zinnov Analysis, LiveMint, Company websites, Inc 42, Economic Times

40

APIs* to be the next growth driver in the SaaS era

Source: Accenture, IBM, Zinnov Analysis, Deloitte, Gartner, News articles



* Application Programming Interface (API) is a code written to protocols that allows disparate systems and applications to talk to one another with minimal intervention

More API first companies are emerging whose business model exist around developers using their SaaS

Why APIs become popular?

Open APIs allowed companies to create new business models

Allows assimilation and redistribution of data, products and service from other providers by consuming their APIs

Creating unique customer Experience

Leveraging services beyond firewalls

Adopting complex technologies without developing them

Company uses APIs to generate sales through partners or third parties

What’s Driving APIs adoption?

Interoperation between internal systems, tools

Reducing development time and cost

Functionality extension in a product or service

Eternal organization partnering

Powering mobile apps

Infrastructure overhead reduction

External product content absorption

Rise in open banking around the word

How APIs works?

A simple food delivery app is developed using technology stack of multiple API

For Restaurant Listing – API

For Payment – PayPal API

For User location - Google Place API

For finding Direction –

For Cloud –

For Storage – Amazon Cloud Storage

For Analytics –

Data, Financial, Analytics, Messaging, Payments are the top 5 APIs categories, together more than 3500 APIs have been created on them

Illustrative

41

APIs moving up the ladder in India with more firms offering such solutions

Source: NASSCOM Analysis, Deloitte, Gartner



Provide financial services as modular building block APIs

Product: Offer billing collection through infrastructure built on UPI, BBPS and Whatsapp

Offer Collaboration Platform for API Development

Provides SMS, Voice & Messaging applications on an API

Product: Scalable SMS API, Scalable Voice API, Number Insights API

API Led Economy

Many Indian companies have utilized the India Technology Stack APIs (Aadhaar, UPI, eKYC, eSign, DigiLocker) and built solutions around these (background verifications, payments/ wallets, digital lending, etc.)

Setu raised $15 million in Series A funding in 2020

Postman raised $150 million in Series C funding in 2020

In 2018, company merged with Italian-based cloud messaging platform Ubiquity

Offer product-specific APIs for insurance business

Riskcovry raised funding in its pre-Series A

Platform enables the distribution of insurance products across different types of insurers

A salesforce product which is an open API application

which allows corporates to reopen offices safely and remain open

Can be easily integrated with Arogyasetu App

Illustrative

42

Among industries, SaaS spend has been highest in BFSI

Source: Zinnov Analysis, Deloitte, Gartner

Software & Services spend account for the spend on enterprise software products and IT services for each vertical. All years are financial years



0.88.0 1.6 1.2

EducationBFSI Retail & CPG

Healthcare & Wellness

0.40.6


4-5% 8-10% 8-10% 6-8% 6-8% 4-6%

Key verticals

Note - All years are financial years

SaaS penetration(% share of software & services)

Indian Software & Services spend($ Billion)

FY2020

43

….with a focus on big data & analytics driving adoption in the industry



Industry size

$1.8trillion



$8billion 4 -5 %



$1.1trillion

$1.6 billion 8-10%

Use of AI to analyse current assets and finances of clients and generate a credit score

Credit Score Analysis Loan Process Automation

Fraud Detection Customer on-boarding

Verify customer credit score through an in-house application and processes all loan applications within 72 hours

Use of AI/ML to analyse fraud trends , historical customer data to adapt and detect all possible types of fraud

E-KYC solution enabling easy onboarding and verification of customer details within minutes

FY2

02

0

Retail & CPGBFSI

Point of sale Product tracking

POS solution that syncs across channels and provides GST invoices, bills, inventory management, etc.

Solution to provide real time information to retailers and logistics providers to increase supply chain visibility

Inventory management Ecommerce

Enabling real time updating of inventory, ensuring optimum stock at distributors and zero stock at retailers

Enables customers to build their own online store/ecommerce website with tools and widgets to create customised content and functionalities

Key

are

as o

f im

ple

me

nta

tio

n


Software & Services spend account for the spend on enterprise software products and IT services for each vertical. All years are financial yearsNote - All years are financial years

44

Rise in tele-medicine adoption among private hospitals and growth of E-learning is driving SaaS adoption in Healthcare & Education, respectively



Industry size

$180billion



$1.2billion 8-10%



$101.1billion

$0.6billion 6-8%

Allows doctors & physicians of multiple specialties to capture details like prescriptions, vital charts, etc.

Electronic Healthcare Record Maintenance Appointment Scheduling

Hospital Record Management Patient Engagement

Enables hospitals and clinics as well as patients to schedule and manage their appointments at any time

Solution offers query handling for bed allocation, appointments, bed transfer, and billing queries.

Solution to provide patients with email/SMS updates regarding treatment schedules as well as prioritize patients based on severity of condition

FY2

02

0

Accessing learning materials

Student Information Management

A Sales representative training solution that identifies & tracks sales capabilities for each rep and provides them with tools to develop those skills

ERP system for student record management across schools/colleges

Tracking Expenses Classroom Management

Provides fully customizable and scalable accounting solution to meet the unique needs of institutions

Solution for coaching classes to monitor student classroom activity and engage with both parents and students

EducationHealthcare

Key

are

as o

f im

ple

me

nta

tio

n



45

Rise in digital adoption is driving SaaS adoption within Travel & Hospitality and Logistics respectively



Industry size

$250billion



$0.6billion 6-8%



$195billion

$0.4billion 4-6%

Allows hotels to manage all front desk activities such as booking management, check-ins , check-outs, etc.

Travel Booking Front Desk Management

Competitor Mapping Website creation

Offers hospitality vendors with real-time data regarding competitor pricing, packages etc.

Allows hospitality vendors to build their own website and booking engine

FY2

02

0

Route Optimization Vehicle Tracking

Solution enables clients to optimize their delivery routes by leveraging data analytics

Solution provides real time information to clients about ETAs, possible delays etc.

Partner Management Delivery Scheduling

Solution provides information regarding fleets – no. of vehicles, trips completed, etc.

Solution for scheduling and optimising deliveries and tasks as per priority


Key

are

as o

f im

ple

me

nta

tio

n

Allows agents & distributors to sell bookings for buses, trains, flights, etc.



46

Indian SaaS Funding- $3 billion in 10 years, 400+ companies funded

Source: Zinnov Analysis, Inc 42 , Company website

Accel Partners, Sequoia & Tiger Global have been the most active investors in the Indian SaaS industry in the last 5 years

Key Highlights

$400 millionAverage size of the India SaaS funds of Accel & Tiger Global



449

500

655674

2015-16 2016-17 2017-18 2018-19

$3+ billionSaaS Indian Funding in the last 10 years

Indian SaaS Funding 2015-19($ million)

400+Indian SaaS companies funded

till date

$300+ millionTotal funding raised by

Freshworks over the last 5 years

Retail & CPGBFSI Healthcare & Wellness

Education

Ve

rtic

alH

ori

zon

tal

ERPCRMBI

& Analytics HCMCCC*

Others

Others

Travel & Hospitality

Logistics

$7 mn.

$10 mn.

$4.2 mn.

$26 mn.

$91 mn.

$14.4 mn.

$81 mn. $50 mn.

$8 mn.

$37.8 mn.

$49.6 mn. $0.27 mn.

$7 mn. $52 mn. $4.5 mn. $19.7 mn. $101.5 mn. $1 mn.

$399 mn. $180 mn. $8.7 mn. $42.5 mn. $10.1 mn. $49.6 mn. $328 mn.

Major Investors

$150 mn.

Illustrative

$0.24Mn

$0.30Mn

47

Source: Company Websites, NASSCOM Analysis

Soaring India SaaS company valuations



Valuation trends of top SaaS companies at different stages of funding*

* Funding raised between 2018 to 2020

Time (in years)

Val

uat

ion

$3.5 bn.

$1.5 bn.

$2 bn.

$0.35 bn.

$1.0 bn.

$0.5 bn.

3 6 9 12

Revenue Retention / Churn

Annual Recurring Revenue

Gross Margin

Growth Rate

Parameters impacting SaaS business valuations

Series H

Series C

Series B

0

Series G

Series E

Series D

Illustrative

48

Source: Company Website, NASSCOM

Emerging opportunities arising Post COVID-19

Collaboration ToolsMaintain and share updated Changelog with your customers

Market the features on sign in pages, landing pages, blog posts and emails

Drift has successfully utilized its sign in pages to show off exciting new features

Workforce DigitizationVirtual staff management

Online interviews

Remote training and surveillance

Supply Chain and Logistics OptimizationDemand management amid manpower shortage

Driver safety and delivery tracking

Predictive capacity planning



Security SaaS Secure Access Service Edge (SASE) architecture model will gain traction

Movement from multiple security solutions with a unified SaaS-based network and security platform

API SaaSMoving away from building everything in-house

Helps creating differentiating product

49

Source: Company Websites, YourStory, Press Releases, Zinnov Analysis

Indian SaaS rapidly moving onto the path of Digital Transformation in the times of COVID-19



Indian SaaS companies have started various initiatives such as 3 months subscription fee waiver for customers, provision of other complementary services and launch of additional features in their products

Zoho Remotely

Zoho launched Remotely - a suite of 11 business productivity and collaboration apps designed to help organizations transition to remote workingRemotely is also being offered free until July 1, 2020

Zoho Classes

Zoho launched Zoho Classes mobile app to help colleges & schools continue the academic session, by teaching students online

Extensions to Freshdesk

Healthcare Bot

Freshworks leveraged its help desk tool Freshdesk to create omnichannel platform where doctors can look at incoming queries, make preliminary reading of the underlying problem such as Covid, mental health issue or acute insomniaClick to call option added for patients/doctors ease

Freshworks launched healthcare bot to help government automate the process of screening people for Covid-19Currently it is being used by Telangana government

Coronathon

• Wingify launched hackathon to develop innovative software/ SaaS products that can help India's fight against Covid-19

• The initiative witnessed several enthusiasts presenting technological solutions to fight the pandemic

• Around 2,300 people joined the initiative and currently are working on 44 ongoing projects and 80 ideas

Extensions to Zenoti

• Satisfy new wait time expectations: Made modifications to the SaaS Product to enable customers arrive just in time so that safe distancing is maintained in lounges

• Added advanced analytics to predict wait times, service time and customer demand

• Enabled touchless payments while delivering a seamless booking, check-in, and check out experience via business’ branded mobile app

• Digital forms to get inputs on medical history as well treatment preferences

Risk Monitoring App

• Eka’s COVID-19 supply chain risk App is designed to help commodity businesses monitor, assess and mitigate risk across their supply chains The app imports real-time information related to the outbreak and correlates it with the supply chain data

• Pre-built algorithms intelligently assess the impact of COVID-19 and provides instant insights into risks associated with inventory, purchase and sales contracts across geographies, commodities, business partners, customers and suppliers

Illustrative



50

Value Proposition of the Indian SaaS industry

India’s global success can be largely attributed to the

following factors –

• Large Skilled Talent Pool – 3+ million software

developers and 100K+ SaaS developers (2019)

• Global Role Models – ~38 SaaS companies with $10

Million+ ARR; deep domain expertise in core SaaS

markets

• Strong Tech Heritage and Ecosystem – Support from

the Government, SaaS giants like Zoho, bodies such as

NASSCOM, SaaSBOOMi and accelerators like Upekkha

• India – the test bed for innovation – Focus on

innovation and deep tech adoption through domestic

consumption

51

India has very large pool of skilled talent and is further expected to grow exponentially

Digital technology skills

15K+ SaaS professionals in

Chennai as of 2019

22 Ex-Zoho employees are

currently founders of

SaaS ventures

3 million+ software

developers as of 2019

India to have largest software developer population by 2024, as per

US based think tank PPI

India to have largest software developer population by 2024

UI/UX

DEVELOPERS

PRODUCT MANAGERS

20K+ AI Developers

18K+ RPA Developers

17K+ IoT Developers

100K+ SaaS Developers as of 2019



Source: IAMAI, Zinnov Analysis, PPI

52

ANNUAL COMPENSATION


India also enjoys the low cost advantage

REUSABLE ASSETS

INFRA COSTS

PRICING

Competitive prices of Indian SaaS products than USand European counterparts

Annual compensation per developer in US is 5 times that of the India

Reusable IPs, codes and processes in product development reduces overall product costs by 40%

Lower Infrastructure costs than average global SaaS companies’ infrastructure costs

Indian SaaS products priced substantially lower compared to its global peer (~4X)



53

Source: Upekka, SaaSBOOMi, Inc42, NASSCOM Analysis

India’s thriving SaaS ecosystem has nurtured various start-ups to become unicorns



SaaS VENTURE CATALYSTS

• Venture catalyst with community of 30+ SaaS founders

• Start-ups from the their earlier cohorts grew 2.5-5X within 12 months

• 4 start-ups currently have their ARR above $1 million and other 4 are on their way to reach $1 million mark

SaaS EVENTS

GOVERNMENT

NASSCOM

EDUCATIONAL INSTITUTIONS LEADING SaaS PLAYERS

• SaaS focused events, round tables and networking• Best SaaSpreneurs mentor and offer insights on

successful SaaS business strategies• Founders include successful SaaSpreneurs

• Access to the Government eMarketplace (GeM) for the SaaS companies

• INR 5000 Cr fund for development of software products in India

Over 75 SaaS companies with ARR $5 million+ currently thrive in Indian SaaS ecosystem

• NASSCOM DeepTech Club is a club of identified and curated DeepTech companies who will be recognized, nurtured and promoted by NASSCOM via various programs, platforms and events.

• Incubated 10,000+ start-ups including SaaS companies countrywide including Druva, Icertis etc.

• Such as Zoho, Freshworks have employees who eventually left to found their own SaaS companies such as Facilio, Chargebee

• Partnered with SaaS giants such as SAP, Freshworks to launch workshops for students and budding SaaSpreneurs

54


India – the Test bed for innovation

INNOVATION CENTRES HEAVY FOCUS ON AI/ML DEEP TECH INITIATIVES

• 140+ AI/ML based SaaS companies• Jungroo Learning - AI powered

adaptive learning SaaS platform • CodeNinja.ai - AI based zero code

Development platform• Aselector - AI based knowledge

management SaaS

• Setting up of Innovation Centres by multiple Indian SaaS players

• Zoho has 2 innovation labs focused on ease of use for application and process automation

• Druva opened innovation centre in 2018 in Pune to focus on Cloud Platform

• Facilio has partnered with Digital X, a subsidiary of Dubai Utilities authorities to help with Dubai wide smart city efforts

• Gaia’s AI+IoT powered SaaS platform-SmartFeedback helps its creation of smart cities

• Sensiwise’s provides integrated hardware & software solutions to track assets and monitor the supply chain

DOMESTIC CONSUMPTION

• Digital transformation of enterprises and SMBs due to shifting towards modern platforms and processes

• Bizom, a retail intelligence configurable platform which behaves differently for each customer, generating 95% revenue from India



55

India’s value proposition has helped firms in enhancing solutions and acquiring customers across geographies and verticals


Note: * SaaS companies with $50M+ ARR



Focus on upskilling

Leading global vendors and associations such as NASSCOM have collaborated and organized upskilling programs

Proficiency in CRM

50%+ of leading Indian SaaS vendors* have built CRM solutions

Presence of Retail/CPG specific solutions

Leading Indian SaaS vendors* have built vertical specific products for Retail

Focus on research & development

Leading SaaS vendors have set up innovation centers focused on deep-tech

Company Presence in USA

All leading Indian SaaS vendors* have set up offices in the US with 30%+ having set up multiple offices

Expertise in AI/ML

140+ AI/ML SaaS companies currently in the country

Presence of BFSI specific solutions

Leading Indian SaaS vendors* have built vertical specific product for BFSI

24X7, Multi-lingual support

All leading SaaS vendors provide 24X7, multi-lingual support

Presence of segment specific offerings

70%+ of leading Indian SaaS vendors* have built specific products for both SMBs & large enterprises

.

Neighbouring Geographies

India is the SaaS hub for Middle East and South East Asia especially for Enterprise SaaS where deployment requires professional services

56

Market Opportunity Analysis

The Indian SaaS industry’s unique value proposition has helped it in developing a sustainable competitive advantage. Key areas in which India is excelling include-

• Developing vertical & segment specific offerings

• Proficiency in deep tech

• Cost arbitrage and 24X7, multi-lingual customer support

• Focus on research & development and developing a skilled workforce

There is a potential $400 billion untapped market for SaaS by 2025.

• Core markets that include verticals such as BFSI, Retail, geographies such as America and Europe, and horizontals such as CRM and ERP will constitute $340 Billion of this addressable opportunity

• Emerging markets that include new geographies such as Asia, India, Middle East, verticals such as Government, Energy, TMT, legal, and segments such as SMBs will add the remaining ~$60 Billion addressable opportunity

57

By 2025, massive addressable global opportunity for SaaS - ~ $400 billion driven by massive growth in new, untapped markets…


Calendar year 2020 and 2025


Market Opportunity Analysis

India Strategy Playbook Outlook and Recommendations

Core Market Market Addition New Geographies New Verticals New Horizontals New Segments

100~240

20-25

15-20

10-15

5-10

360-400

Key Geographies - USA, Europe, IndiaKey Verticals - BFSI, Retail, Education, HealthcareKey Horizontals – CRM, ERP, CCCKey Segments - LEs

Asia Pacific – Vietnam, Singapore, PhilippinesMiddle East & Africa –South Africa, Kenya, Bahrain

• Legal• Government• TMT• Sports• Energy & Utilities

• BI & Analytics• Data Security• Gamification

• SMBs

2019($ billion)

2025($ billion)

58

….within geographies, vertical, horizontals and customer segments




1

2

3

4

CORE MARKET GROWTH• Core SaaS market to grow by $240 billion at a

rate of 22.6%• Americas remain the highest SaaS adopters,

accounting for majority of the addressable market • Growing SaaS adoption among large enterprises in

developing regions, and BFSI and retail sectors

NEW VERTICALS

• New verticals expected to add $15-$20 billion• Rise in deep tech adoption, digitization is helping SaaS

penetrate newer industries such as Energy & Utilities, TMT, Sports, etc.

• Need for social distancing, remote working will increase adoption across other industries such as Government, Legal

NEW GEOGRAPHIES• New geographies expected to add $20-$25 billion• Banks in the Middle East and South East Asia (Philippines,

Vietnam) have begun adopting SaaS solutions albeit with restrictions on cloud platforms

• SMBs in Africa (South Africa, Kenya) & South East Asia (Singapore) have also started adopting SaaS products

NEW HORIZONTALS

• New horizontals expected to add $10-$15 billion• Rise in digitization and dependence on data will ensure

the rise in adoption of Data Analytics & Security• Newer horizontal solutions like gamification will also

emerge

NEW SEGMENTS

• New segment expected to add $5-$10 billion• Newer sub segments within SMBs are showing

traction in terms of SaaS adoption e.g. unorganized retail sector in India

• SMBs in developing nations have also started adopting SaaS

Global SaaS Opportunity~$400 billion by 2025

59

Rise in SaaS adoption in South East Asia and Middle East & Africa

Continued growth of the US SaaS market

Emergence of new use cases

Increase in SaaS adoption among Banks indeveloping regions

Emergence of niche markets & sub-verticals

Indian unorganized sector showing traction

Continued dominance of CRM

Rise of data analytics and AI in SaaS

India’s value proposition to address the growing SaaS demand




Presence of BFSI specific

solutions

Expertise in AI/ML

Proficiency in CRM

Focus on upskilling

24X7, Multi-lingual

support

Presence of Retail/CPG

specific solutions

Company Presence in

USA

Focus on research &

development

Presence of segment specific

offerings

Ge

ogr

aph

yV

ert

ical

Segm

en

tH

ori

zon

tal

Indian’s Value Proposition

Key Growth drivers

Low impact High impact

60

Indian SaaS market expected to reach $13-15 billion by 2025 with the Americas being a key market among geographies…

Source: Zinnov Analysis, IDC, Gartner, MarketWatch, Medium, Company Websites

Note – * These use cases are within the key areas of competence for Indian companies



Americas

Europe

Middle East & Africa

Asia Pacific

• Europe accounts for more than 28% of the global SaaS revenue

• Rise in Open Banking, tele-health adoption, digital education is leading to an increase in SaaS adoption in BFSI , Healthcare, Education, etc.

• Government bodies in Germany are promoting the development of digital infrastructure

• The Americas has been the leading SaaS adopter accounting for ~60% of the global market

• The US government started adopting SaaS solutions for its internal functions and has also been promoting SaaS adoption within industries

• Banks & other Large Enterprises (LE) are investing in SaaS solutions either by partnering with ISVs or are developing and selling their own solutions

• Government bodies are promoting cloud adoption within their own departments

• Enterprises in regions such as South East Asia (e.g. Banks) have recently started adopting SaaS solutions albeit with a few caveats such as specific underlying cloud platforms

• SMBs including the unorganized sector in India has started showing traction

• Certain government bodies are promoting cloud adoption within their own departments and are training their citizens in the same

• Enterprises in the region (e.g. Banks) have recently started adopting SaaS solutions albeit with a few caveats such as specific underlying cloud platforms

• Enterprises in developing regions like Kenya have started adopting SaaS products and are contacting Indian SaaS companies (e.g. NowFloats) for the same

Key Regions – USA, Canada

Emerging Regions – Mexico, Brazil

Key Verticals – BFSI, Manufacturing, Healthcare, Retail, Education, Travel & Hospitality, Hi- Tech

Emerging Verticals – Energy & Utilities, Gaming, TMT

Key Regions – UK, France, Germany

Emerging Regions – Ireland, Netherlands

Emerging Verticals – Energy & Utilities, Gaming

Key Verticals – BFSI, Healthcare, Retail, Education, Travel & Hospitality, Tech

Key Regions – UAE, Saudi Arabia, South Africa

Emerging Regions – Bahrain, Egypt, Kenya

Key Verticals – BFSI, Retail,

Emerging Verticals – Healthcare, Education

Key Regions – China, India, Japan, Australia

Emerging Regions – Singapore, Malaysia, New Zealand

Key Verticals – BFSI, Education, Healthcare, Retail, Tech

Emerging Verticals – Manufacturing

Regional Highlights

Regional Highlights

Regional Highlights

Regional Highlights

Key use cases*– Fraud Detection, Inventory Management, Patient Monitoring, EHM, Order Tracking, Business Analytics, Student Management System

Key use cases*– Loan Processing, Inventory Management, POS, Product/Order tracking, Ecommerce (website creation & management)

Key use cases*– Fraud Detection, KYC, Inventory Management, Patient Monitoring, EHM, Order Tracking,

Key use cases*– Loan Processing, Inventory Management, POS, Product/Order tracking, Ecommerce (website creation & management, Patient Monitoring, tax Management, Analytics

61

…. and CRM among horizontals and BFSI among verticals




HighlightsCRM - market leader

CRM continues to be the market leader among horizontal solutions

COVID-19 driving demand for digital workplace solutionsRecent developments such as the Covid-19 pandemic is driving the demand for remote working

solutions such as video conferencing

Rise in adoption of data analytics and security solutions Need for data driven decision making is driving the demand for Analytics & BI based solutions

High rates of digital adoption is also leading to a higher rate in cyber attacks leading to an increase in demand for security solutions

Highlights

Rise in SaaS adoption among LEs and SMBs among developing regionsLEs in certain areas (UAE, South East Asia ) have started adopting SaaS based solutions for the first time

Among developing regions, SMBs have shown high SaaS adoption rates. Recently the unorganized retail sector of India has also started showing traction

Highlights

BFSI shows highest SaaS adoption• BFSI has shown the highest adoption rates among verticals and this will

continue with the rise in digital payments, open banking. Banks in certain regions (e.g. UAE, Philippines) have started adopting SaaS for the first time

Rise in digital adoption across industries• Rise in telehealth, ecommerce, e-learning is also ensuring the rise of SaaS

adoption in healthcare, retail and education. Covid 19 is contributing to this growth in demand

Emergence of new verticals & sub-verticals• Newer verticals are emerging (e.g. energy and utilities) in addition to sub-

verticals within existing verticals

Loan Application Processing, KYC documentation, Fraud Detection, Credit Score Analysis, Tax Management

Product Tracking, Ecommerce (website development and management), Inventory Management, POS services

Patient monitoring, Health record management, Patient Scheduling, Patient Engagement

Accessing learning material, Digital classes, Expense tracking, Student information management, Classroom management

Key Use Cases

BFSI

Retail

Healthcare

Education

VERTICALS

Key Verticals BFSI, Retail, Healthcare, EducationOthers - Manufacturing, TMT, Legal, Environmental, Travel & Hospitality, Sports, Logistics

HORIZONTALS

Key Use CasesLarge Enterprises

KYC documentation, Fraud Detection, Credit Score Analysis, Tax Management, Patient monitoring, Health record management, Patient Scheduling, Student information management, Classroom management

Loan Application Processing,, Credit Score Analysis, Payment Processing, Tax Management, Product Tracking, Ecommerce website development, Inventory Management, POS services, Digital classes

SMBs

CUSTOMER SEGMENTS

62

Indian SaaS companies can focus on high growth use cases within geographies and verticals


The aforementioned use cases Is expected to account for 60% of the attainable market



Americas EuropeMiddle East

& Africa

Retail – Ecommerce, Product Tracking – This includes the development and management of ecommerce websites and tracking products/orders/deliveries. This is largely due to a high adoption in the Middle East

Education – Classroom Management, Student Information Management – Recent initiatives made by education departments to increase digitization in schools/colleges leading to the rise in SaaS adoption. Key areas include maintenance of student records (Student Information Management) and monitoring & managing classroom activity – displaying content, etc. (Classroom Management)

BFSI – Fraud Detection, KYC – The adoption of open banking, challenger banks in the UK are leading to the adoption of SaaS in BFSI in Europe. Key areas of adoption include customer onboarding and identification (KYC) and detection of fraudulent payments, document forgery in insurance etc. (Fraud Detection)

Healthcare - Enterprise Healthcare Management, Remote Patient Monitoring –This includes electronic storage and analysis of healthcare records and documents (patient history, current symptoms and vitals. Prescription, etc.). The FDA has been pushing for further digitization in the field and have launched mandates for the same.

BFSI – KYC, Loan Processing – Banks in the Middle East have recently started adopting SaaS solutions . Key areas of adoption include customer onboarding and identification (KYC) and processing of loan application documents, credit history (Loan Processing)

BFSI – Fraud Detection, KYC – Banks in the US are investing in SaaS solutions either by partnering with ISVs or by developing their own solutions. Key areas of focus includes leveraging digital technology (AI/ML) in the detection of fraudulent payments, document forgery in insurance etc. (Fraud Detection)

Asia Pacific

Retail – Ecommerce, POS – There has been an increase in digital adoption among SMBs in South East Asia (including the unorganized sector) Key areas of adoption include the development and management of ecommerce websites and capturing and analyzing point of sales information by brick and mortar stores (POS)

BFSI – KYC, Loan Processing, Tax Management – Banks in South East Asia have recently started adopting SaaS solutions . Key areas of adoption include customer onboarding and identification (KYC) and processing of loan application documents, credit history (Loan Processing). Other areas utilized by companies include digital tax filing

63

Strategy Playbook

Indian SaaS companies need to have a strategy that is a combination of product, price, GTM which solves multiple purposes

• Ensuring business continuity during times of crisis – Be proactive during times of crisis (e.g. COVID-19 Pandemic), engage with the ecosystem, existing customers and ensure business continuity during and after the crisis period

• Enhancing its existing value proposition – Have strategies that builds on and enhance the existing value proposition such as proficiency in CRM, domain expertise in BFSI, Retail, 24X7 customer support, etc.

• Utilizing emerging opportunities – Have well aligned initiatives and GTM strategies for emerging opportunities (e.g. investing in language training before entering emerging geographies like South East Asia)

64

Short term business continuity initiatives implemented during COVID-19 (1/2)….



Market Opportunity Analysis Strategy Playbook Outlook and Recommendations

Customer friendly pricing models

Remote Sales Enablement

Employee Engagement

Cost Saving & Asset Efficiency Use Cases

Ecosystem Engagement

Thought Leadership

BCP InitiativesDuring COVID-19

Offer free trials, low customer friendly pricing models and free training modules

Invest in thought leadership to ensure market visibility and maintain mindshare; Organize webinars and digital roundtables

Need to restructure the sales process to include remote workshops and webinars; provide requisite tools, remote access to sales collaterals, training & enablement

Enable secure remote access to work by leveraging cloud and productivity tools: Provide employees with training modules across disciplines to ensure skill development

Focus on use cases that bring in bottom line impact (productivity gains through automation, digitization, etc.)

Engage with members of the ecosystem (enterprises, SIs) to formulate business continuity plans

Ensuring business continuity during times of crisis

65

Short term business continuity initiatives implemented during COVID-19 (2/2)….



Prioritize Industries & Accounts

Tiered Pricing

Re-establish onshore Sales Teams

Evaluate Partnership Programs

Inorganic Capability Acquisitions

Develop automated smart solutions

BCP InitiativesPost COVID-19

Prioritize industries with sustained demand for SaaS; focus on deeper engagements with clear value proposition especially in existing accounts with upsell potential

Invest in developing automated solutions by utilizing RPA,AI/ML etc. as the world rebuilds with a renewed focus on digitization

Introduce tiered pricing models allowing companies to choose the features they need

Need to bring sales teams close to the target location to initiate conversations with existing and potential clients

Increase collaboration & joint business plans with key partners as requirements shift towards full-stack solutions and outcome driven pricing

Double down on acquisitions for capability building as assets will be willing to accept reasonable valuations

Ensuring business continuity during times of crisis


66

..Will morph into long-term strategic initiatives…

Building industry expertise and develop more industry specific use cases

Develop Flexible and Segment/Geography specific pricing plans .

Have training modules on non-technical areas - new languages, technical writing etc.

Leverage digital technology to build more automated, user friendly products

Partnering with local ecosystem members – startups, enterprises, Tech Giants etc.

Focus on sales & marketing – Sales teams for each geography, aggressive promotions etc..

Build innovation centres, COEs, to identify new opportunities and build solutions for the same

• Partner with local ecosystem members to enhance presence and expertise through customer referrals, joint product development, co-innovation, gaining industry knowhow etc.

• Low/affordable pricing plans for SMBs and developing areas such as Africa

• Tiered / bundled pricing plans for LEs

• Build a brand presence by having a sales team for every geography preferably near the client location

• Invest in the use of billboards, TV ads, developing region specific content e.g. advertising at NBA games in USA

• Build on current industry expertise in areas such as BFSI, Retail and develop new industry specific use cases

• While exploring new industries, build products around horizonal areas of expertise such as CRM

• Build a user friendly interface which does not require any technical expertise

• Leverage AI/ML/RPA to build smart products/offerings which automates mundane actions

• Form teams to conduct focused research on Identifying new opportunities within geographies, verticals etc. related to the current areas of expertise

• Enhance existing customer support by introducing new languages, better quality technical support documents

• Enhance promotional efforts by having better quality whitepapers, blogs

Strategic Initiatives



Enhancing its existing value proposition


67

…Which leverages and enhances existing value proposition

Presence of BFSI specific

solutions

Expertise in AI/ML

Proficiency in CRM

Focus on upskilling

24X7, Multi-lingual

support

Presence of Retail/CPG

specific solutions

Company Presence in

USA

Focus on research &

development

Presence of segment specific

offerings

Indian’s Value Proposition



Partner with local ecosystem members – startups, enterprises, Tech Giants, etc.

Develop Flexible and Segment/Geography specific pricing plans

Focus on sales & marketing – Sales teams for each geography, aggressive promotions, etc.



Build innovation centers, CoEs, to identify new opportunities and build solutions for the same

Have training modules on non-technical areas such as new languages, technical writing, etc.



Enhancing its existing value proposition


68

Multiple opportunities are emerging within SaaS…

Continued dominance of CRM among horizontal solutions

Rise of data analytics and AI in SaaS

Continued growth of the US SaaS market

Emergence of New Use Cases

Rise in SaaS adoption in South East Asia and Middle East &

Africa

Adoption of SaaS in the Indian unorganized sector

Emergence of niche markets & sub-verticals)

Increase in SaaS adoption among Banks in developing

regions

Indian SaaS vendors to build on their current CRM offering by leveraging digital technology

Indian SaaS vendors to leverage their expertise in BFSI and build

customised solutions

Indian SaaS vendors to enhance current offerings by leveraging

digital technology

Indian SaaS vendors to appeal more to the unorganized sector due to low-cost offerings & multi-lingual

support

Indian SaaS vendors to increase marketing efforts and sales team presence in South East Asia & the Middle East & Asia and liaise with

local ecosystem members

Opportunities for Indian SaaS

Existing Indian AI SaaS companies (140+) to leverage this opportunity and older SaaS companies to build competencies in the same

More Indian companies to set up offices/sales teams in the US and partner with local startups, enterprises

Indian SaaS companies to develop expertise and enhance/tailor their current offerings



Utilizing emerging opportunities

Source: Zinnov Analysis, IDC, Gartner

69

…Which can be attained through an aligned strategic approach

Rise in SaaS adoption in

South East Asia and Middle East

& Africa

Adoption of SaaS in the Indian unorganized

sector

Emergence of niche markets &

sub-verticals)

Increase in SaaS adoption among

Banks in developing

regions


Rise of data analytics and AI

in SaaS

Continued growth of the US

SaaS market


Key Growth Drivers



Partner with local ecosystem members – startups, enterprises, Tech Giants, etc.

Develop Flexible and Segment/Geography specific pricing plans

Focus on sales & marketing – Sales teams for each geography, aggressive promotions, etc.



Build innovation centers, COEs, to identify new opportunities and build solutions for the same

Have training modules on non-technical areas such as new languages, technical writing, etc.





70

…And well defined GTM strategies

Rise in SaaS adoption in

South East Asia and Middle East

& Africa

Adoption of SaaS in the Indian unorganized

sector

Emergence of niche markets &

sub-verticals)

Increase in SaaS adoption among

Banks in developing

regions


Rise of data analytics and AI

in SaaS

Continued growth of the US

SaaS market


Key Growth Drivers

GTM Strategies




Identify a Target Segment

Lean Start Up - “Think Big, Start Small and Scale Fast”

Specific Pricing Strategies

Fast Adoption - Quality product, Fanatical Support and Frictionless onboarding

Product Market Fit Mantra - “Pitch to customers, consult them, thank them”

Content Strategy - Customer Success

Content Marketing Distribution - Mix of Organic and Paid Distribution Tactics

Churn Management

Partnership Ecosystem

Geographical Expansion



71

Outlook and Recommendations

Indian pure-play SaaS industry has the potential for 6X revenue growth by 2025

To achieve this growth, the industry ecosystem has to come together to act on 5 key themes-

• Drive adoption of SaaS- Push from Government and MSMEs to drive digital transformation through SaaS solutions

• Strong funding pipeline- 3-4X growth in annual funding through access to domestic capital

• Shape the next gen SaaS Companies- Robust non-VC funded model to grow industry base by 2-3X

• Build brand India- Invest in building a strong India SaaS brand

• Create Skilled Talent- Focus on enhancing SaaS skillsets through industry and academia support

72

Indian SaaS players can target a 6X growth in next 5 years to reach $13 -15 billion by 2025

Source: NASSCOM

Note 1- Revenue for pure play Indian SaaS companies Growth to include CAGR growth, revenue from new geographies, verticals, horizontals and segments 2. Share of global SaaS market 3&4 Numbers were estimated by using the formula valuation = 10X revenue. Companies with current revenue more than $50M were considered for the business as usual scenario. For the remaining scenarios, we considered companies with revenues between 20-25 and 25-30



Revenue1

Number of companies with over $50 million ARR

$13 - $15 billion

35-40

~$2.5 billion

8

2020 2025

Cumulative Valuation4 8-10X 8-10X

Recommendation Themes

Adoption

Funding

Talent

Entrepreneurship

Brand

73

Realizing Outlook 2025 : Focus on strengthening the overall ecosystem



Source: NASSCOM

• Build Brand India for SaaS through marketing, visibility and trust

• Promote tier-II/III and non-metro locations to develop SaaS companies in India; develop SaaS to be geo-agnostic solutions provider

• Robust non-VC funded model required to grow current SaaS industry base by 2-3X

• Government can dedicate 30-40% of the Fund of Funds for start-ups to promote entrepreneurship in SaaS

• Create awareness among start-ups to develop and register Intellectual Property (IP) as a requisite item

• Focus on building SaaS skillsets and a effective Industry mentorship program

• Increase focus on Design Thinking, product management in Academics and Enterprises

• Strong Government push for procurement of Made In India SaaS products

• Digital transformation of MSMEs through Indian SaaS

Shape the Next Gen SaaS Companies

• 3-4X annual funding, required to grow India SaaS market by 6X

• Access to India domestic capital

• Short term financial support to maintain business continuity in the short-term

Strong Funding Pipeline

Government and MSME as adopters

Build the SaaS India Brand

Create Skilled Talent

RECOMMENDATIONS TO STAKEHOLDERS

74

APPENDIX

http://www.zinnov.com/

http://www.zinnov.com/

75

Research Team and Methodology

Note 1- For the purpose of this research we have only considered B2B SaaS companies

PRIMARY INTERVIEWS

PUBLIC REPORTS

1

23 COMPANY WEBSITES

Primary interviews helped us in understanding the Indian value proposition as well as in formulating the recommendations and strategy playbook. As part of the process, we conducted 24 interviews with stakeholders from both SaaS enterprises (Druva, Zoho, Freshworks) as well as Private Equity firms (Blume Ventures, YourNest, Speciale Invest)

As part of our secondary research process, we went through reports published by NASSCOM, Gartner, IDC as well as other news reports and blogs. These sources helped us in estimating market specific figures –Size, Growth, geographical and horizontal split, vertical specific adoption etc.

In addition to public reports, we also went through company websites, thought leadership material, interviews, financial statements, case studies . These helped us in understanding emerging trends among SaaS companies, customer behaviour, funding trends,

Achyuta Ghosh Ashish GuptaSangeeta Gupta

NASSCOM Research Team Knowledge Partners

Nirmala Balakrishnan

76

Key / Contributors

SaaS Companies/Startups PE/VC firms/Accelerators

Rajasekaran P. Bahwan CyberTech

Arjun Pratap EdgeNetworks

Manav Garg EkaPlus

Nivas Ravichandran Freshworks

Monish Darda Icertis

Amit D.Mishra InterviewMocha

Suresh Sambandam Kissflow

Malay Shah Leadsquared

Radha Sarma Luit Infotech

Atul Batra Manthan

Tarun Malviya Mithi.com

RaviTeja Dodda Mo Engage

Jasminder Singh Gulati NowFloats

Sudhir Shetty Talisma

Rakesh Aggarwal Tally Solutions

Lux Narayanan Unmetric

Ramkumar Narayan VMWare

Adit Chhabra Wobot

Anand Nergunam Zoho

Pratik Agarwal Accel

Sanjay Nath Blume Ventures

Jitesh Luthra Blume Ventures

Avinash Raghava SaaSBHOOMi

Anirudh Viswanath SaaSBHOOMi

Arjun Rao Speciale Invest

Shekar Nair Upekkha

Satish Mugulavalli YourNest

Stakeholder StakeholderCompany Name Company Name

/NASSCOMOfficial

/nasscomR

/NasscomVideos

www.nasscom.in

+91-120-4990111

[email protected]

NASSCOM Plot 7 to 10, Sector 126, Noida - 201303

DisclaimerThe information contained herein has been obtained from sources believed to be reliable. NASSCOM and its advisors & service providers disclaims all warranties as to the accuracy, completeness or adequacy of such information. NASSCOM and its advisors & service providers shall have no liability for errors, omissions or inadequacies in the information contained herein, or for interpretations thereof. The material or information is not intended to be relied upon as the sole basis for any decision which may affect any business. Before making any decision or taking any action that might affect anybody’s personal finances or business, they should consult a qualified professional adviser.

Use or reference of companies/third parties in the report is merely for the purpose of exemplifying the trends in the industry and that no bias is intended towards any company. This report does not purport to represent the views of the companies mentioned in the report. Reference herein to any specific commercial product, process or service by trade name, trademark, manufacturer, or otherwise, does not necessarily constitute or imply its endorsement, recommendation, or favouring by NASSCOM or any agency thereof or its contractors or subcontractors.

The material in this publication is copyrighted. No part of this report can be reproduced either on paper or electronic media without permission in writing from NASSCOM. Request for permission to reproduce any part of the report may be sent to NASSCOM.

Copyright © 2020

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RIDING THE STORM - NIPPnipp.tech/storage/app/file/270720_040309.pdf · 2020. 7. 27. · market share followed by ERP and CCC • SaaS firms accounted for $32 billion funding (2019)