Indian SaaS firms are on track to dominate global markets
India's Software as a Service (SaaS) industry just crossed $15 billion in annual revenue for FY24, powered by more than 36 companies each making over $100 million a year.
The sector has been growing fast—about 24% each year since 2019—and is now gearing up for a fresh wave of IPOs.
Vertical SaaS players are growing faster than the rest
Indian SaaS firms build cloud-based tools—some serve all kinds of businesses (horizontal), while others focus on specific industries like banking or retail (vertical).
Interestingly, vertical SaaS players are growing even faster than the rest, and high profit margins (often 70-85%) mean they can expand without burning out.
More tech IPOs expected through 2025
IPOs are heating up: Freshworks listed on Nasdaq in 2021, Unicommerce hit Indian exchanges in August 2024, and Capillary Technologies is next in line.
With steady growth and investors caring more about profits now, expect more tech IPOs through 2025.