India’s SaaS industry is poised for explosive growth, with projections pointing to a staggering $50 billion valuation by 2030. The rapid integration of Artificial Intelligence (AI) into software solutions is expected to supercharge this expansion, according to a new report by Bessemer Venture Partners.
The report, ‘The Rise of SaaS in India 2024,’ underscores the transformative impact of AI on the sector. A significant portion of the $1 billion in venture funding earmarked for Indian startups this year is likely to flow into AI-focused companies. Moreover, a surprising 60% of existing SaaS players are already pivoting to incorporate AI into their offerings.
‘2024 marks AI’s mainstream adoption,’ says Anant Vidur Puri, Partner at Bessemer Venture Partners. ‘We foresee a future where all software is AI-driven or enhanced.’ India’s robust AI talent pool positions the country as a global leader in this domain.
Beyond AI, cybersecurity, wealth tech, and industrial software are emerging as key growth drivers. The cybersecurity market, in particular, is booming, with 99% of Indian firms planning to increase their cyber budgets. Cyber insurance is also set to witness a 50% annual growth, reaching $800 million by 2030.
With a favorable investment climate and a skilled workforce, India’s SaaS sector is undoubtedly on a trajectory to become a global powerhouse.
