May 24, 2018

Third Annual India SaaS Survey Results – 2017

DC Advisory US India, India’s largest software investment banking advisory practice, is pleased to announce the publication of its third annual India SaaS Survey Results 2017 based on responses collected in 2017. The survey was conducted in partnership with iSPIRT, the Indian Software Product Industry Round Table.

DC Advisory US India and iSPIRT received responses from 59 companies with aggregate Annual Recurring Revenue (ARR) exceeding $150 million. Key findings from this year’s survey include:

  • Our typical (median) respondent this year is at $0.75M in ARR, likely to be headquartered in Bangalore or Chennai (58%) and was founded in 2014 or later
  • Whereas last year we noted a “paucity of machine focused SaaS,” this year infrastructure SaaS made it into the top 3 amongst horizontal focus areas (and took in >50% of horizontal funding)
  • Overall our respondents grew faster than last year and continue to be bullish on the future, looking towards North America for growth
  • Across the board our respondents typically earn gross margins in the range of 60-70%, with R&D being the largest expense post gross margins
  • Over a third of our sample has never raised external capital. Those that have, have raised $1-5Mn (median) at 7.5-10.0x of ARR (median)
We look forward to your support and participation for future surveys.

SaaS Survey_2017_Distribution version May – Final2