India: A rising SaaS Powerhouse
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Transcript of India: A rising SaaS Powerhouse
Confidential & proprietary information
India: A rising SaaS Powerhouse
December 2016
Confidential & proprietary information
# 2
India Has Technology, Talent Pool And Cost Advantage To Build Globally Competitive SaaS Businesses
Confidential & proprietary information
# 3
India Has The Largest Pool Of SaaS Ready / Skill Ready Software Developers, UI/UX Designers And Product Managers Outside Of US
in thousands
Source: Google-Accel SaaS Report
India has the talent pool in SaaS to replicate Israel’s success with Security space
Confidential & proprietary information
# 4
Rich Pool Of Mentors Available To Indian SaaS Entrepreneurs Who Have Experience Of Creating Businesses Of Global Scale
Satya NadellaMicrosoft
Nandan Nilekani Ex-Infosys
Amit Singhal
Ex-Google
Rajan Anandan
Sridhar Vembu
Zoho
Dheeraj PandeyNutanix
Ravi VenkatesanEx-Microsoft
Reggie Aggarwal
Cvent
Confidential & proprietary information
# 5
India's Inherent Cost Efficiencies In Support, Engineering, Desk Marketing & Sales Result In Edge Over Developed World Players In SaaS Unit Economics
costs as % of total revenue for a typical SaaS company
Source: Google-Accel SaaS Report
Better EBITDA
Margins by 3-4x
Confidential & proprietary information
# 6
Thanks To These India Advantages A Vibrant SaaS Ecosystem is Emerging in India
Confidential & proprietary information
# 7
India has 400+ SaaS companies with >30 with $5mn+ ARR and >10 with $10mn+ ARR
Source: Venture Intelligence; Signal Hill and Industry Estimates
~$150mn
Bootstrapped
~$115mn
Numbers indicate funding raised till date
~$125mn
Bootstrapped
~$75mn
Bootstrapped
~$21mn
~$28mn
~$36mn
$50M
~$105mn
~$38mn
~$30mn
Confidential & proprietary information
# 8
$740 mn+ VC/PE Capital Invested In Last 2 Years (CY15 & YTD CY16) - 105% Growth Over Prior 2 years
Note: (1) YTD as of Nov’16Source: Venture Intelligence
in USD mn
$360mn+ across 72
deals
$740mn+ across 74
deals
2x$90
$60
$55
$51
$50
$45
$30
$23
$15
$15
Top 10 India SaaS Deals in Past 2 Years (USD mn)
Confidential & proprietary information
# 9
Global Technology Majors Have Taken Notice of B2B Tech In India, Approaching $1B Software M&A Tipping Point
Chinese Investor
ConsortiumAcquiredAcquired Acquired Acquired Acquired Acquired
AcquiredAcquired Acquired Acquired Acquired Acquired
$900 mn$130 mn $30-40 mn ~$10 mn
~$9 mn$10-15 mn ~$30 mn $200 mn$136 mn
Confidential & proprietary information
# 10
Indian SaaS Businesses Can Capture Disproportionate Share Of World SaaS Market
Confidential & proprietary information
# 11
Two Significant Global Trends That Favour Indian SaaS Businesses
SMB Contribution to World SaaS Market
Rise of Asia & Its Increasing Contribution to Global
Growth
Confidential & proprietary information
# 12
Asia Is One Of The Largest And Fastest Growing Economic Zones
Asia’s share in Global GDP (real US$ PPP) will increase further
2015 2025
Source: Delloite, Oxford Economics
Confidential & proprietary information
# 13
SMB The Most Under Penetrated But Fastest Growing SaaS Segment
Revenue % for global SMB Software Market
Source: Google-Accel SaaS Report
3.2x
SMB SaaS Revenue in USD bn
Confidential & proprietary information
# 14
Indian SaaS Companies Are Expanding Addressable Market In SMBs and Asian Enterprises By Offering Compelling Product At A Competitive Price
$40per agent /month(1)
$100per agent /month(2)
$300-700
per month(6)
>$1000per
month(7)
Note: (1) Estate Plan billed annually (2) Enterprise Plan billed annually (3) Professional & Enterprise plan billed annually (4) Lightening Professional & Enterprise plan billed annually (5) Price comparison for a 100 room property billed annually (6) Pro & Advance plan billed annually (7) Base PlanSource: Company websites; Industry reports
$20-35per user /month(3) for CRM
$75-150per
user/month(4) for CRM
$100-120per month(5)
for Channel Manager
$150per month(5)
for Channel Manager
Confidential & proprietary information
Thank You!
Nitin BhatiaManaging Directornbhatia@signalhill
.in
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