Opportunities For Horizontal SaaS In India’s SMB Market Report 2020

Opportunities For Horizontal SaaS In India’s SMB Market Report 2020

India is home to approximately 63 Mn SMBs as per the government’s 2015-16 estimate. Out of which 44 Mn (or 70% of the total) are unregistered, whereas the remaining 19.5 Mn are officially registered. In recent times, multiple SaaS companies from India and around the world have shown confidence in India’s vibrant SMB ecosystem and have been offering tech solutions to help them manage work and operations digitally. Some of these key companies include Zoho, Clevertap, Wingify, Freshworks and Deskera.

The DataLabs by Inc42 Plus’ ‘Opportunities For Horizontal SaaS In India’s SMB Market Report 2020’ maps the $8.7 Bn horizontal SaaS opportunity in the Indian SMB sector and provides a juxtaposition between the individual SMB sectors that have the more lucrative business opportunity as well as why horizontal SaaS has the biggest headroom for growth.

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Opportunities For Horizontal SaaS In India’s SMB Market Report 2020

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the times of india

Key Highlights

$8.7 Bn

Market Size For Horizontal SaaS Solutions In Indian SMB Sector By 2025

Retail SMBs

Offers The Most Lucrative Business Opportunity For Horizontal SaaS Offerings


The Average Churn Rate Of Horizontal SaaS Startups Across The World

$2.8 Bn

Raised By Horizontal SaaS Startups Across 286 Funding Deals Between 2014 And H1 2020

$518 Mn+

Total Aggregate Revenue Generated By Indian Horizontal SaaS Startups In FY'19

Table Of Contents

  • Scope Of The Report
  • Introduction
  • Executive Summary
  • The Indian SMB Landscape
  • The Rise Of Digital SMBs
  • Favourable Factors And Associated Risks For Horizontal SaaS
  • Horizontal SaaS For Indian SMBs
  • India’s SaaS Landscape: Horizontal Vs Vertical SaaS
  • Total Addressable Market For Horizontal SaaS
  • Selling To SMBs: Sectors With Most Lucrative Business Opportunities
  • The State Of The Customer Matrix
  • Funding Trends In Indian SaaS Startups
  • Top Investors in Indian Horizontal SaaS
  • Merger & Acquisition Trends
  • Financial Performance Of India’s Prominent Horizontal SaaS Startups
  • Benchmarking The Global Horizontal SaaS Market
  • Emerging Trends In Horizontal SaaS
  • Methodology
  • Bibliography


The adverse environment in terms of technology adoption makes majority of theIndian SMBs less efficient compared to other tech-adoptive businesses. Besides operational inefficiency, the informal status of the SMB sector and the lack of digitalisation also make it difficult to leverage the benefits offered by formal financial institutions such as access to cheaper credit and other financial products. The total market opportunity for horizontal SaaS solutions in the SMB space is estimated to be $8.7 Bn. Out of which 22%(the single highest individually) worth $1.9 Bn is in the retail segment. India is home to approximately 21 Mn plus retail outlets which are classified as SMBs, with social distancing norms in place and more people opting for home delivery the opportunity in areas such as— contactless checkouts/payments and delivery order management, is poised to increase. In addition to retail, education and manufacturing also have lucrative opportunities for horizontal SaaS products. For instance, in the case of manufacturing, we are witnessing growing interest from both the government as well as the people for domestic manufactured products.

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