92% Of Indian SaaS Start-Ups Incorporate AI, USD 25 Billion Revenue Predicted By 2030: Reports

New Delhi, Aug 6 (KNN) A recent report by Bessemer Venture Partners reveals a significant trend in artificial intelligence (AI) adoption among Indian software-as-a-service (SaaS) start-ups.

According to ‘The Rise of SaaS in India 2024,’ nearly 92 per cent of surveyed companies have incorporated AI features into their products over the past year, with 87 per cent now identifying as AI-native or AI-enabled.

The study, which surveyed approximately 100 SaaS start-ups with annual recurring revenue (ARR) between USD 3 million and USD 200 million, highlights the growing integration of technologies such as machine learning, natural language processing, and advanced analytics into SaaS platforms.

The report projects substantial growth for the Indian SaaS sector, forecasting that unicorns and centaurs will generate USD 20 to USD 25 billion in revenue by 2030.

Notable India-first companies like Perfios, Bill Desk, and Razorpay are expected to achieve a combined ARR of USD 5 billion by 2023, while global-first firms such as Zoho, Amagi, and Icertis are anticipated to reach USD 17 billion ARR in the same period.

Investment in Indian SaaS start-ups remains robust, with USD 0.53 billion raised in the first half of 2024, compared to USD 0.9 billion in 2023. The sector has also witnessed the emergence of two new unicorns this year: Perfios and Krutrim.

As AI adoption increases, so do cybersecurity concerns. The report notes that domestic consumption of cyber software and services in India grew to USD 6 billion in 2023, up from USD 3.4 billion in 2021.

The number of cybersecurity professionals in the country has more than tripled to around 300,000 over the past three years.

Industry leaders emphasise the transformative impact of AI on their businesses.

Siva Rajamani, Co-Founder and CEO, Everstage, stated, "AI has been an undeniable catalyst for Indian SaaS. It has accelerated our ability to move swiftly and decisively in the market."

Bessemer Venture Partners, an early investor in several prominent Indian start-ups, has been active in the country since 2006. Their global portfolio includes companies like Pinterest, Shopify, and LinkedIn.

(KNN Bureau)