There is a new and potentially $1 trillion-worth of technology in India.

It was more than two decades ago that India began its metamorphosis into a worldwide information technology powerhouse, ushering in a period of unprecedented riches and employment growth in the country.

Now, Asia’s third-largest economy is prepared to embark on the next great technological frontier: the creation of a new generation of software businesses such as Zoom or Slack.

Firms all around the globe have been compelled to make significant investments in digital infrastructure as a result of the Covid-19 epidemic, increasing the prominence of companies that provide software as a service, or SaaS. According to a KPMG poll, businesses spent an additional $15 billion a week on technology in the past year as they hurried to build secure remote working environments for employees.

SaaS firms provide web-based applications that handle everything from ensuring that the programme is safe to ensuring that it runs as expected. Zoom (ZM), SAP Concur, and Salesforce (CRM), the American juggernaut that owns the workplace messaging tool Slack, are just a few of the world’s most well-known SaaS firms.

According to recent research published by consultancy company McKinsey & Co. and SaaSBoomi, a community of industry experts, India’s software-as-a-service business may be worth $1 trillion in value by 2030 and generate over half a million new employment.

According to the research, there are roughly a thousand such businesses in India, with ten of them being unicorns, or startups with a market capitalization of at least $1 billion.In the words of Girish Mathrubootham, CEO of Freshworks, India’s most well-known SaaS startup, “This has the potential to be as enormous an opportunity as the IT services sector was in the 1990s.” It filed for an initial public offering (IPO) last month, joining a growing list of other large Indian technology startups that are planning to go public this year.

Established in the southern Indian city of Chennai more than a decade ago, Freshworks has grown into a global brand. It, like Salesforce, provides software to assist businesses in managing their relationships with their consumers. With more than 50,000 clients, it is also India’s oldest unicorn in the field, having garnered funding from investors such as Tiger Global and Accel, and is the country’s first unicorn. According to analytics provider Tracxn, the company was last valued at $3.5 billion in a fundraising round that took place in 2019.

Other Indian SaaS companies have gained momentum by concentrating on certain specialised markets. Take, for example, Zenoti, a unicorn company that develops software for the spa and beauty salon industries. Six of India’s ten SaaS unicorns will have reached that milestone by 2020, and investors from across the world are paying attention to their progress. According to the SaaSBoomi study, investors poured $1.5 billion into Indian SaaS start-ups last year, four times more than they did in either 2018 or 2019 combined.

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