Indian SaaS firms are on an efficient, resilient growth path: report

Indian SaaS companies are likely to continue to grow and have a bullish outlook in 2023 as per the Bellwethers of Indian SaaS report, by EY in partnership with Upekkha Value SaaS Accelerator.

Indian SaaS growth is highly capital-efficient by default across stages and remains largely unmoved by recessionary trends of the past year, it said.

This study is based on a survey of 140 B2B SaaS companies.

Nitin Bhatt, Technology Sector Leader, EY India, said there were a number of factors which made Indian SaaS companies more resilient than their global counterparts.

“The Indian SaaS ecosystem is being built on a foundation of operational and fiscal prudence.

Companies are prioritising efficient growth over growth at any cost, and finally, capital efficiency is a hallmark of Indian SaaS.

"We believe it will serve as a force multiplier as conditions improve and companies prepare for the next cycle of growth,” he said.

The report said that with economic recovery expected in H2 of 2023, funding activity is expected to gain traction.

This presents an opportunity for Indian SaaS companies with demonstrated profitability to raise capital at
favourable terms and double down on growth.