By Jyoti Banthia Comments READ LATER Even as the Indian start-up ecosystem faced a bitter funding winter over the past two years, the software-as-a-service (SaaS) sector not only managed to weather the downturn but emerged stronger. In fact, a joint report from SaaSBOOMi and McKinsey & Co projects revenue of $50-70 billion and enterprise value of $500 billion by 2030 for the SaaS sector in India. Using cloud technology, SaaS firms provide subscribers access to applications over the internet, while they take care of the required physical and software resources.
Business-to-business SaaS players operate through a combination of transaction-based fee and a fixed rate-based subscription fee. Since 2019, B2B SaaS start-ups have raised $9.18 billion funding.
In just five months of this year, they have raised $413.2 million across 70 rounds, compared to $683.4 million across 243 rounds last year, according to data intelligence platform Tracxn.
India’s booming D2C beauty market Fund thesis: AI is the X-factor Sex-tech: Mixing pleasure with business The investments had peaked in 2021 at $3.9 billion. Over the years, the zero-interest rate phenomenon or ZIRP (RBI policy to stimulate economic activity) led to an influx of cash for start-ups, as they became attractive to risk-taking investors.
B2B SaaS players focus on segments such as banking, financial services and insurance (BFSI) technology, consumer products, and industrial conglomerates, which employ thousands of people. Leading .
