Riding the Storm Towards the Giant India SaaS Opportunity

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

2
Debjani Ghosh
President, NASSCOM
The building blocks of a good software product and an ecosystem that works are quite similar- both need different components to
come 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 of
India's SaaS industry has been a combination of software products, platforms, combined with the transcending power of delivering
software 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 and
has an addressable market of $400 billion. The Indian SaaS industry is uniquely positioned to take advantage of this untapped
opportunity given the competitive edge it gained organically for a number of reasons - the IT Services boom that lead to the
development of in-depth understanding of technology that goes into building great products, a highly skilled workforce and of
course, the English-speaking proposition.
In this report we intend to decode growth for the Indian SaaS industry with recommendations for strategies with focus on
product, 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 been
carefully 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 on
products that rival the world's best. And, the success of Indian SaaS industry is rooted in how we continue to share, pivot and
innovate 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 at
research@nasscom.in
Manav Garg
Member of SaaSBOOMi Board
CEO & 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 host
applications on cloud and enable consumers to access it over the internet.
Even though SaaS originated in early 2000, rapid global adoption happened only
after the 2009 crisis, as organizations looked to cut software costs. Increasing
cloud penetration, need for scalability, and digital technology adoption has today
made SaaS the fastest growing software segment, generating revenues of $100
Billion in 2019.
Key characteristics that define a SaaS model –
Market
Landscape
• 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 SaaS
landscape leading to further diversification
• External trends impacting SaaS – Government initiatives,
geo-political events
• Technologies such as AI are playing a huge role in SaaS
product development
• Vertical SaaS - 500+ vertical SaaS companies have
emerged in last decade
• Mobile SaaS – $6 billion standalone market in 2019
• Data driven decisioning driving BI & analytics, while
cybersecurity concerns driving data security SaaS
No hardware &
software
installation
required
Automatic
Over-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 for
SaaS, driven by growth in new, untapped markets:
• Core Market Growth
• The core SaaS market, driven by America and BFSI, will
continue to grow by $240 billion by 2025
• New Geographies to Weigh In
• Middle East, South East Asia and Africa to see rise in SaaS
adoption and add $20-25 billion opportunity in 5 years
• New Verticals to Add to Addressable Opportunity
• Rise in deep tech adoption & digitization to aid SaaS
penetrate into newer industries such as Energy & Utilities,
TMT, Sports- ~$15 billion opportunity
• New Segments & Horizontals Impact
• Customer segments like SMBs are showing traction in
terms of SaaS adoption and can generate an addressable
opportunity of $5-10 billion by 2025
• Rise in digitization and dependence on data will ensure
the 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 combination
of 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 & employee
engagement
• 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-lingual
capabilities
• 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 Overview
KEY 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 $100 billion SaaS industry
Source – Gartner, IDC, NASSCOM Cloud report, ZDNet, Accel Euroscape, Company Website
Note – Company logos are mentioned in the years they were founded
0
20
40
60
80
100
120
140
1960 1980 1990 1995 1998 1999 2001 2010 2018 2019 2022
Revenue($billion)
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 launched
2012 - 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
Proposition

11
Global SaaS market growing at CAGR ~23% and to reach $133 billion by 2021
Source- Gartner, Zinnov Analysis
Note – 1. Others include manufacturing, travel & hospitality, logistics, etc. 2. Others include security, BPM 3. CCC– Content, Collaboration & Communication. All years are calendar years
100
2019
58.8
2017
1332021
CAGR-22.6%
Major SaaS Segments
Global SaaS Market
($ billion)
Retail & CPGBFSI
Healthcare &
Wellness
Education
VerticalHorizontal
ERPCRM BI & Analytics SCMHCMCCC3
Proposition
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
Americas
Key regions –
USA, Canada, Brazil
EMEA
Key regions –
UK, Germany, Russia
Asia Pacific
Key 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*
Proposition
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
Proposition
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
Proposition
1972 1975 19771911 1981
198919992003
1982
200520072009
2011 2012 2015
IBM public cloud offering, SmartCloud
Enterprise, 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 legacy
related issues
Legend: Native SaaS companiesTraditional Product Companies
Investment in Sales &
Marketing
Strategic acquisitions
Co-marketing
Geography focused
sales teams
Focus on R&D and
Product Development
Product focused GTM
Strategy
Omni Channel Presence
Unorthodox hiring
strategies
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
8months
For Slack to reach $1
Billion valuation
Traditional Product Based
Companies
Native SaaS Companies
Proposition

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%)
Proposition

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 85.7 100
Market size
($ billion)
Microsoft’s acquisition of Linkedin & cloud partnership with Adobe enabled it to overtake Salesforce as the market leader in SaaS
Proposition

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
Proposition
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
$52.3
billion 28%
Industry size Software & Services
spend
SaaS as a % of
Software & services
$34.6
trillion
$35
billion 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 fraud
among claims
SaaS solution offering
customer – on-boarding,
account origination for all
banking verticals (SMB, LE,
retail)
2019
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
Keyareasofimplementation
Proposition
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
Software & Services
spend
SaaS as a % of
Software & services
$40
billion 25%
spend
SaaS as a % of
Software & services
$6
trillion
$21
billion 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 time
Adds 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
Proposition
2019
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 Management
Digital Asset Management
(DAM)
Companies can protect
copyrights for digital media
DAM Solution automates
the management of images
and other non-textual
materials
LogisticsTravel & Hospitality
Proposition
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 $300 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
Proposition
3%
India
Europe20%

23
SaaS: Key Trends
Growth 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 Analysis
Legend: 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 Regulations
Selling 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 events
US 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
Proposition
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
Proposition
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
Proposition
~9
2019
~7.5
2017
~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
$1.9billion
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
Proposition
~4
2019
~2.5
2017
~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
Proposition
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+
Proposition
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 years
Success 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
Proposition

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)
Proposition
2015 - 40+ 2017 - 60+

32
SaaS companies are adapting quickly to ensure business continuity despite the
widespread impact of COVID-19
Note - Based on stock market performance/ analyst reports
Strategies to combat Covid-19Covid-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
Proposition

33
Indian SaaS Market Landscape
India 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
3.5
FY2020
2.1
FY2018
Indian SaaS Revenue
($ billion)
Proposition
CAGR-30%
Domestic
21%
Exports
79%
Domestic
25%
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

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 & CPGBFSI
Healthcare &
Wellness
Education
Verticals
Others1Travel &
Hospitality
Logistics
KEY VERTICALS
Horizontals
Proposition
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
Proposition
• 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
Proposition
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)
Funding
rounds 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
Proposition
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
Proposition
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
Proposition
* 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
Proposition
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
Proposition
0.88.0 1.6 1.2
EducationBFSI Retail &
CPG
Healthcare
& Wellness
0.40.6
LogisticsTravel &
Hospitality
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
Proposition
Industry size
$1.8
trillion
Software & Services
spend
SaaS as a % of
Software & services
$8
billion 4 -5 %
spend
SaaS as a % of
Software & services
$1.1
trillion
$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
FY2020
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
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
Proposition
Industry size
$180
billion
Software & Services
spend
SaaS as a % of
Software & services
$1.2
billion 8-10%
spend
SaaS as a % of
Software & services
$101.1
billion
$0.6
billion 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
FY2020
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

45
Rise in digital adoption is driving SaaS adoption within Travel & Hospitality and
Logistics respectively
Proposition
Industry size
$250
billion
Software & Services
spend
SaaS as a % of
Software & services
$0.6
billion 6-8%
spend
SaaS as a % of
Software & services
$195
billion
$0.4
billion 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
FY2020
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
LogisticsTravel & Hospitality
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 million
Average size of the India SaaS
funds of Accel & Tiger Global
Proposition
449
500
655
674
2015-16 2016-17 2017-18 2018-19
$3+ billion
SaaS Indian Funding in the last 10 years
Indian SaaS Funding 2015-19
($ million)
400+
Indian SaaS companies funded
till date
$300+ million
Total funding raised by
Freshworks over the last 5 years
Retail & CPGBFSI Healthcare &
Wellness
Education
VerticalHorizontal
ERPCRM
BI
& Analytics HCMCCC*
Others
Others
Travel &
Hospitality
Logistics
$7 mn.
$10 mn.
$4.2 mn.
$26 mn.
$91 mn.
$14.4 mn.
$81 mn.
$300 mn.
$50 mn.
$8 mn.
$37.8 mn.
$49.6 mn.
$300 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

47
Source: Company Websites, NASSCOM Analysis
Soaring India SaaS company valuations
Proposition
Valuation trends of top SaaS companies at different stages of funding*
* Funding raised between 2018 to 2020
Time (in years)
Valuation
$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 Tools
 Maintain 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 Digitization
 Virtual staff management
 Online interviews
 Remote training and surveillance
Supply Chain and Logistics Optimization
 Demand management amid manpower shortage
 Driver safety and delivery tracking
 Predictive capacity planning
Proposition
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 SaaS
 Moving 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
Proposition
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 working
Remotely 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
insomnia
Click to call option added for
patients/doctors ease
Freshworks launched healthcare bot to
help government automate the process
of screening people for Covid-19
Currently 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
Proposition
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 US
and 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)
Proposition

53
Source: Upekka, SaaSBOOMi, Inc42, NASSCOM Analysis
India’s thriving SaaS ecosystem has nurtured various start-ups to become unicorns
Proposition
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
Proposition

55
India’s value proposition has helped firms in enhancing solutions and acquiring
customers across geographies and verticals
Note: * SaaS companies with $50M+ ARR
Proposition
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 - ~ $400 billion
driven by massive growth in new, untapped markets…
Calendar year 2020 and 2025
Proposition
Market Opportunity
Analysis
India Strategy Playbook Outlook and Recommendations
Core Market Market Addition New Geographies New Verticals New Horizontals New Segments
100
~240
20-25
15-20
10-15
5-10
360-400
Key Geographies - USA,
Europe, India
Key Verticals - BFSI, Retail,
Education, Healthcare
Key Horizontals – CRM,
ERP, CCC
Key Segments - LEs
Asia Pacific – Vietnam,
Singapore, Philippines
Middle East & Africa –
South Africa, Kenya,
Bahrain
• Legal
• Government
• TMT
• Sports
• Energy & Utilities
• BI & Analytics
• Data Security
• Gamification
• SMBs
2019
($ billion)
2025
($ billion)

58
….within geographies, vertical, horizontals and customer segments
Proposition
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 in
developing 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
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
GeographyVerticalSegmentHorizontal
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
Proposition
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
Proposition
Highlights
CRM - market leader
CRM continues to be the market leader among horizontal solutions
COVID-19 driving demand for digital workplace solutions
Recent 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 regions
LEs 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, Education
Others - Manufacturing, TMT, Legal, Environmental, Travel & Hospitality, Sports, Logistics
HORIZONTALS
Key Use Cases
Large 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
Proposition
Americas Europe
Middle 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)….
Proposition
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 Initiatives
During
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)….
Proposition
Market Opportunity Analysis Strategy Playbook Outlook and
Recommendations
Prioritize Industries & Accounts
Tiered Pricing
Re-establish onshore Sales Teams
Evaluate Partnership Programs
Inorganic Capability Acquisitions
Develop automated smart solutions
BCP Initiatives
Post
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
Proposition
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.
Building industry expertise and develop more
industry specific use cases
Leverage digital technology to build more
automated, user friendly products
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.
Proposition
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
Proposition
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
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
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.
Building industry expertise and develop more
industry specific use cases
Leverage digital technology to build more
automated, user friendly products
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.
Proposition

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
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
Key Growth Drivers
GTM Strategies
Proposition
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
Proposition
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
Proposition
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

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
2
3 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
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