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India: A rising SaaS Powerhouse

India Has Technology, Talent Pool And Cost Advantage To Build Globally Competitive SaaS Businesses

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India: A rising SaaS Powerhouse

  1. 1. Confidential & proprietary information India: A rising SaaS Powerhouse December 2016
  2. 2. Confidential & proprietary information # 2 India Has Technology, Talent Pool And Cost Advantage To Build Globally Competitive SaaS Businesses
  3. 3. Confidential & proprietary information # 3 India Has The Largest Pool Of SaaS Ready / Skill Ready Software Developers, UI/UX Designers And Product Managers Outside Of US in thousands Source: Google-Accel SaaS Report India has the talent pool in SaaS to replicate Israel’s success with Security space
  4. 4. Confidential & proprietary information # 4 Rich Pool Of Mentors Available To Indian SaaS Entrepreneurs Who Have Experience Of Creating Businesses Of Global Scale Satya Nadella Microsoft Nandan Nilekani Ex-Infosys Amit Singhal Ex-Google Rajan Anandan Google Sridhar Vembu Zoho Dheeraj Pandey Nutanix Ravi Venkatesan Ex-Microsoft Reggie Aggarwal Cvent
  5. 5. Confidential & proprietary information # 5 India's Inherent Cost Efficiencies In Support, Engineering, Desk Marketing & Sales Result In Edge Over Developed World Players In SaaS Unit Economics costs as % of total revenue for a typical SaaS company Source: Google-Accel SaaS Report Better EBITDA Margins by 3-4x
  6. 6. Confidential & proprietary information # 6 Thanks To These India Advantages A Vibrant SaaS Ecosystem is Emerging in India
  7. 7. Confidential & proprietary information # 7 India has 400+ SaaS companies with >30 with $5mn+ ARR and >10 with $10mn+ ARR Source: Venture Intelligence; Signal Hill and Industry Estimates ~$150mn Bootstrapped ~$115mn Numbers indicate funding raised till date ~$125mn Bootstrapped ~$75mn Bootstrapped ~$21mn~$28mn ~$36mn$50M ~$105mn ~$38mn ~$30mn
  8. 8. Confidential & proprietary information # 8 $740 mn+ VC/PE Capital Invested In Last 2 Years (CY15 & YTD CY16) - 105% Growth Over Prior 2 years Note: (1) YTD as of Nov’16 Source: Venture Intelligence in USD mn $360mn+ across 72 deals $740mn+ across 74 deals 2x $90 $60 $55 $51 $50 $45 $30 $23 $15 $15 Top 10 India SaaS Deals in Past 2 Years (USD mn)
  9. 9. Confidential & proprietary information # 9 Global Technology Majors Have Taken Notice of B2B Tech In India, Approaching $1B Software M&A Tipping Point Chinese Investor Consortium AcquiredAcquired Acquired Acquired Acquired Acquired AcquiredAcquired Acquired Acquired Acquired Acquired $900 mn$130 mn $30-40 mn ~$10 mn ~$9 mn$10-15 mn ~$30 mn $200 mn$136 mn
  10. 10. Confidential & proprietary information # 10 Indian SaaS Businesses Can Capture Disproportionate Share Of World SaaS Market
  11. 11. Confidential & proprietary information # 11 Two Significant Global Trends That Favour Indian SaaS Businesses SMB Contribution to World SaaS Market Rise of Asia & Its Increasing Contribution to Global Growth
  12. 12. Confidential & proprietary information # 12 Asia Is One Of The Largest And Fastest Growing Economic Zones Asia’s share in Global GDP (real US$ PPP) will increase further 2015 2025 Source: Delloite, Oxford Economics
  13. 13. Confidential & proprietary information # 13 SMB The Most Under Penetrated But Fastest Growing SaaS Segment Revenue % for global SMB Software Market Source: Google-Accel SaaS Report 3.2x SMB SaaS Revenue in USD bn
  14. 14. Confidential & proprietary information # 14 Indian SaaS Companies Are Expanding Addressable Market In SMBs and Asian Enterprises By Offering Compelling Product At A Competitive Price $40 per agent /month(1) $100 per agent /month(2) $300- 700 per month(6) >$1000 per month(7) Note: (1) Estate Plan billed annually (2) Enterprise Plan billed annually (3) Professional & Enterprise plan billed annually (4) Lightening Professional & Enterprise plan billed annually (5) Price comparison for a 100 room property billed annually (6) Pro & Advance plan billed annually (7) Base PlanSource: Company websites; Industry reports $20-35 per user /month(3) for CRM $75-150 per user/month(4) for CRM $100-120 per month(5) for Channel Manager $150 per month(5) for Channel Manager
  15. 15. Confidential & proprietary information Thank You! Nitin Bhatia Managing Director [][] Tie Global and isprit contact details required