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The Future of India SaaS by Upekkha
- 1. The future is bright for India Value SaaS. Community Retreat January 2023
- 2. SaaS continues to grow! 16% in 2022 Global Acceleration 2021 to #SaaSAcre 2022 2021 saw hyper acceleration globally. 2022 saw #SaaSacre with public valuations going down We saw 2 year of digital transformation in 2 months Digital Transformation Blitzkreig 2021 macro trends with rising interest rates in the USA access to cash became expensive upekkha.io Index Performance
- 3. The emphasis has shifted to capital efficiency and profitability The new mantra Be Value SaaS! upekkha.io
- 4. Value SaaS = Burn multiple < 1 Bottom up by David Sacks Burn Multiple Efficiency Under 1x Amazing 1 - 1.5x Great 1.5 - 2x Good 2 - 3x Suspect Over 3x Bad The lower the Burn Multiple, the more efficient the growth is. For venture-stage startups, these are reasonably good rules of thumb. Founder control Founder optionality Smart fund-raising upekkha.io
- 5. Value SaaS Aims for Meaningful Founder Outcome ARR growth with profitability is the focus and not Valuations and VCs! upekkha.io
- 6. Value SaaS has been around globally for a while 1 in 3 are Value SaaS Burn Multiple<1 upekkha.io
- 7. 2004 IPO 2013 2015 2020 Public Value SaaS startups upekkha.io Datadog = 0.08 Semrush = 0.07 OLO, Veeva = 0.05 Zoominfo = 0.02 Super capital efficient BM:
- 8. upekkha.io * $702B ARR by 2030 CAGR: 19% Global Public SaaS Companies $50B to $70B ARR will be India SaaS India SaaS Companies 80% Value SaaS India SaaS Companies India SaaS is inherently Value SaaS * Allied Market Research, Sept 2022
- 9. ● All Upekkha startups are Value SaaS. ● 6 Upekkha startups over $1M ARR ● 5 Upekkha startups over $5M ARR India Value SaaS bubbling up startups above $1+M ARR upekkha.io
- 10. Meaningful Founder Exit Founder Forever / Continue Hyperscale VC Growth Value SaaS DNA provides Optionality for a founder upekkha.io
- 11. Unlike traditional software, Value SaaS creates recognisable asset value Value SaaS increases Real Asset value You can borrow on your ARR!!! upekkha.io
- 12. In troubled times, people are more open to change as a way of bailing out. What can enable that change? SaaS !! In 2025: 85% of business apps will be saas 50% of entire digital data will be in cloud Global shift to Value SaaS and India’s position creates unique advantage leveled playing fields in world markets GTM Efficiency Digital adoption unstoppable in recessions upekkha.io
- 13. Adversity brings out the greatest opportunities IT services built through 3 recessions Startup nation when all odds were against them. Google and others were products of recession. upekkha.io
- 14. Being where you are, you are already different upekkha.io
- 15. Value SaaS Community strengthens the advantage for each other Collaboration Global Thinking Growth Mindset Chutzpah upekkha.io
- 16. If it takes you time to get to your $1M ARR, don't sweat Deliver max value & guidance Survive and thrive Do more with less Avoid practiced mistakes Motivate your team! Continue to be Value SaaS! upekkha.io
- 17. Founder Obsession is one of the Core values Upekkha is here to help you upekkha.io
- 18. Count on us The community and Upekkha are the pillar you can count on. ● Personal challenges ● Emotional challenges ● Organisational challenges upekkha.io
- 19. We are a Value SaaS accelerator not a fund! ● Do things right the first time ● The right Mindset shift ● $100K to stay focussed on foundations upekkha.io
- 20. Value SaaS Movement In 2002, we had the choice of quitting or persevering. We chose to persevere, and we became a Value SaaS company. Godard Abel G2 Crowd two successful exits & acquired by a US company said- "the next startup I build would be a Value SaaS company." Ashwin Ramasam PipeCandy Vinoth Kumar Paperflite built a Value SaaS/capital-efficient company post an early-stage fund-raise. The Value SaaS movement is happening! upekkha.io
- 21. What Next? ● Propel this forward ● No deserving founders left out - (G2 article ref) ● Start with 60 startups this year (Value SaaS community) upekkha.io
- 22. One person startup Founder outcome equivalent to $2B startup $20M ARR startup. upekkha.io
- 23. Who has control, freedom, taken less risk and has enjoyed the journey the most? There are many inspirational stories like this including builtwith, hostify and surveymonkey. At Upekkha we believe there will be a lot of you who will create such value for yourself and your teams! Food for thought upekkha.io
- 25. 80% SaaS by 2030 upekkha.io Global Companies $800B ARR by 2030 Global Public SaaS Companies $80B ARR will be India SaaS India SaaS Companies 80% Value SaaS India SaaS Companies India SaaS is inherently Value SaaS
Editor's Notes
- What does Value SaaS mean? It means capital efficiency. It is all about burn-multiple or the money you burn to generate revenues. Here is a table of good and bad burn multiples. We do not say not to raise funds. We ask you to be in control of your journey, raise only what you need, when you need it and when you are ready for it, and from the right partner in your journey. Raise only what you need, when you need it, when you are ready for it, and from the right partner in your journey. Meaningful founder outcome matters the most and not vanity metrics.
- 33% of the public SaaS companies globally are Value Saas They have burn multiples of less than 1 Expensify was so capital efficient that they could reward themselves and their team well.
- Salesforce raised $65m before IPO ( - https://www.crunchbase.com/organization/salesforce/company_financials At IPO in 2004 $96m revenue, $3.5m profit https://www.infoworld.com/article/2667687/salesforce-com-raises--110-million-in-ipo.html Veeva raised a total of $7m before IPO - https://www.crunchbase.com/organization/veeva/company_financials Revenue at time of IPO in 2013 $129.5m https://www.bizjournals.com/sanfrancisco/blog/2013/10/veeva-raises-261-million-in-ipo.html Atlassian raised $210m in secondaries, only just before IPO with Accel and T Rowe Price https://www.crunchbase.com/organization/atlassian/company_financials Revenue of $149m at time of IPO https://techcrunch.com/2020/06/02/ahead-of-its-2015-debut-atlassians-ipo-deck-detailed-a-financial-rocketship/ Zoom info total funding of $7m https://www.crunchbase.com/organization/zoominfo Revenue at time of IPO in 2020 $293m https://www.geekwire.com/2020/zoominfo-raises-887-million-blockbuster-ipo-rings-virtual-nasdaq-bell/
- Burn Multiple 1.5 vs 2.5 globally - Global Saas will be roughly $800B ARR by 2030. - At Least 10% of this will be India SaaS. (80B) India SaaS is capital efficient in nature. 80% are Value SaaS. Burn multiple of 1.5x vs 2.5x globally
- Multiple startups above $1+M ARR 11 Upekkha startups above $1M ARR 5 of these is over $5M+ ARR All of the Upekkha Startups are Value SaaS All of the Upekkha Startups are Value SaaS
- Recessions will come and go. Many good companies were built during difficult times.
- Number of upekkha cohorts - 11 Number of startups - 108 Number of founders - 214 Number of > 5 M ARR companies- 3 Number of > 1 M ARR companies- 6 Number of cities where our startups are today- around 10
- Working together - collaboration in the community Share leads share costs, help each other close deals, win renewals Global thinking from day 1 Growth mindset Chutzpah! - super confidence & believing in yourself, take risks
- Deliver maximum value to customers Guide customers on their spends and ROI. survive and thrive do less with more Avoid mistakes others have made! Motivate your team! Continue to be Value SaaS!
- We are a Founder focussed team.
- With a growing and strong Value SaaS community, you get to “do things right the first time” and fail fast if you have to. If it takes you time to get to your $1M ARR don't sweat. UI path took close to 10 years to get there and is now $10B+ in ARR (I need to recheck this) We give all our startups $100K to stay focussed on building your foundation. We are a Value SaaS accelerator not a fund!
- YOU need to propel this forward and create a tsunami across all parts of India and the world will feel it! We don’t want deserving founders to be left out in the India SaaS race. We want to help them in their journey to build capital efficient business with or without support from an investor ecosystem! (mention the number of saas categories in G2crowd and the number of those that can be funded……) We will be working with 60 such startups next year.
- Company Name- Digital Inspiration (https://digitalinspiration.com/) Location- New Delhi Overview- They build bespoke solutions that use the capabilities and the features of Google Workspace and Google Apps Script for automating business processes and driving business productivity. They have developed several popular productivity tools including Mail Merge for Gmail and Document Studio. They have over 10+ million installations. Clients- Airbus, LinkedIn, Disney, the US Embassy etc Recognition- Amit has appeared on various TV channels and radio shows including CNN IBN, BBC Radio, CNBC, and NDTV. HT mentions Amit as the founder of the Indian blogging revolution. The Economic Times calls him an out-of-the-box thinker while the prestigious Straits Times of Singapore included Amit in their list of Asia’s Blog Stars alongside Chinese actress Xu Jinglei. Imagine the value he has created for himself! Even at a modest valuation of $200M, it is equivalent to $2B dollar companies with 10% founder equity.
- - 80% of all software globally will be SaaS by 2030. Burn Multiple 1.5 vs 2.5 globally - Global Saas will be roughly $800B ARR by 2030. - At Least 10% of this will be India SaaS. (80B) India SaaS is capital efficient in nature. 80% are Value SaaS. Burn multiple of 1.5x vs 2.5x globally