Amid the growing demand for Generative Artificial Intelligence (Generative AI) tools, like ChatGPT, a rapid growth of Indian GenAI-based Software-as-a-Service (SaaS) startups has also grew over the time. According to a report by SaaSBoomi and McKinsey, Generative AI based SaaS startups have more than doubled since 2021, in India, and have raised $590 million in funding as of May 2023.
Currently, there are around 60 Generative-AI startups in India, compared to just 18 in 2021 the report said.
The report titled ‘India’s SaaS Revolution: Exploring global opportunities in a dynamic market', also predicts that the India-centric SaaS ecosystem could achieve $50-70 billion in revenue and $0.5 to $1 trillion in enterprise value creation aspirations by 2030. Indian SaaS firms generated around $2.6 billion in revenue in 2020, which is projected to reach $15-20 million by 2025.
Capital invested in Indian SaaS companies grew 24% from $5.9 billion in 2021 to $8.4 billion 2022, even as SaaS investments globally got a 20% shaving from $305 billion to $245 billion in the same period.
Globally, the number of Gen AI-native SaaS companies has exploded, with over $12 billion invested in 60+ emerging domains in FY23 alone. Generative AI has attracted the attention of software giants like SAP, Salesforce, and IBM.
The number of Indian SaaS exits doubled in the last two years as more and more companies learnt the scaling and M&A mantras from their successful peers, said the report.
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By utilizing the depth of domain and functional expertise available in India, SaaS companies in the country are well-positioned to embrace Generative AI. Investment firms like Together Fund are actively seeking opportunities in companies that leverage Generative AI.
The growth of Generative AI will have an impact on the workforce, requiring companies to invest in training and upskilling.
Last month, Indian IT services company HCLTech partnered Microsoft, a major investor in ChatGPT parent OpenAI, to help enterprises harness generative artificial intelligence (AI). Microsoft will train and develop skills among Indian IT company's workforce.
In early of last month, BYJU’S also announced the launch of BYJU’S WIZ, an innovative suite of three cutting-edge artificial intelligence (AI) transformer models - BADRI, MathGPT, and TeacherGPT.
The growth of Generative AI will have an impact on the workforce, requiring companies to invest in training and upskilling.
Last month, Indian IT services company HCLTech partnered Microsoft, a major investor in ChatGPT parent OpenAI, to help enterprises harness generative artificial intelligence (AI). Microsoft will train and develop skills among Indian IT company's workforce.
In early of last month, BYJU’S also announced the launch of BYJU’S WIZ, an innovative suite of three cutting-edge artificial intelligence (AI) transformer models - BADRI, MathGPT, and TeacherGPT.
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