The Economic Survey 2024, tabled in Parliament by Finance Minister Nirmala Sitharaman, reveals that India has created 21 Software-as-a-Service (SaaS) unicorns since 2014. This remarkable achievement underscores the country’s growing prowess in the tech startup ecosystem.
The survey, which provides a comprehensive account of the economy, its prospects, and policy challenges, highlighted the burgeoning demand for scalable and efficient cloud solutions as a key driver behind the rise of SaaS startups in India. “The strength of the Indian tech start-up ecosystem lies in its large pool of start-ups, unicorns, and ability to scale,” the survey stated.
This growth in the SaaS sector has garnered significant interest from investors, propelling the ecosystem forward despite current macroeconomic pressures and a challenging funding environment. According to a recent report by VC firm Chiratae in collaboration with Zinnov, the Indian SaaS industry is poised to grow 2.5 times, reaching a revenue of $26 billion by the end of 2026.
The report also noted that the Indian SaaS sector is well-positioned to overcome the current slowdown, driven by tight macroeconomic conditions. This optimism is reflected in the initiatives taken by the government to support the industry. In 2022, the government launched ‘Meghraj,’ a cloud computing initiative aimed at accelerating the delivery of e-services while optimizing the Centre’s ICT spending. Meghraj ensures optimum utilization of infrastructure and expedites the development and deployment of eGov applications.
“The strength of the Indian tech start-up ecosystem lies in its large pool of start-ups, unicorns, and ability to scale,” emphasized the Economic Survey.
The SaaS highlights in the Economic Survey 2024 come amid a surge of growth and interest within India’s SaaS ecosystem from investors.