This report unravels the story of India SaaS in this stormy weather. With capital efficiency at the heart of the operation, will Indian B2B SaaS companies Sink or Swim?
Insights from the survey of Indian B2B SaaS CXOs by Upekkha and EY
This report unravels the story of India SaaS in this stormy weather. With capital efficiency at the heart of the operation, will Indian B2B SaaS companies Sink or Swim?
Insights from the survey of Indian B2B SaaS CXOs by Upekkha and EY
1. Indian SaaS growth is capital-efficient by default
8 out of 10 India SaaS companies have a burn multiple of < 1.5x
8 out of 10 companies with ARR > US$10 million have a burn multiple under 1.5x
2. India B2B SaaS projects bullish growth for 2023
4 out of 10 CXOs target over 100% growth (ultra growth)
8 out of 10 CXOs target above 50% ARR growth (hypergrowth)
The majority of ultra growth companies are vertical SaaS
3. 1 out of 3 India SaaS company is either an ultra or hyper-growth company
35% of the companies surveyed generating ARR more than US$1 million have low burn (<1x) and are targeting hyper-growth (50%+ ARR growth)
4. India B2B SaaS projects bullish growth for 2023
2 out of every 3 companies reported improvement in key performance metrics e.g., net dollar retention rate (NDRR), customer lifetime value (CLTV) and payback period
The bullish growth outlook is balanced by financial and operational prudence, reflecting strong focus on building and scaling capital-efficient businesses. SaaS built from India for the world is highly capital efficient by default. Most Indian SaaS companies have a burn multiple of 1.5x (globally <2x is considered a good state for growth stage). The bellwethers of Indian B2B SaaS are clearly focused on ‘sustainable growth’ vs. ‘growth at all cost.’
We hope the findings of the EY-Upekkha report will bring a fresh perspective to India SaaS founders and turn the attention of global investors toward Indian SaaS ever more strongly.
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