India Has Technology, Talent Pool And Cost Advantage To Build Globally Competitive SaaS Businesses

1. Confidential & proprietary information
India: A rising SaaS Powerhouse
December 2016

2. Confidential & proprietary information
# 2
India Has Technology,
Talent Pool And Cost
Advantage To Build
Globally Competitive SaaS
Businesses

3. 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

4. Confidential & proprietary information
# 4
Rich Pool Of Mentors Available To Indian SaaS Entrepreneurs
Who Have Experience Of Creating Businesses Of Global Scale
Satya Nadella
Microsoft
Nandan Nilekani
Ex-Infosys
Amit Singhal
Ex-Google
Rajan Anandan
Google
Sridhar Vembu
Zoho
Dheeraj Pandey
Nutanix
Ravi Venkatesan
Ex-Microsoft
Reggie Aggarwal
Cvent

5. 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

6. Confidential & proprietary information
# 6
Thanks To These India
Advantages A Vibrant
SaaS Ecosystem is
Emerging in India

7. 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

8. 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’16
Source: 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)

9. Confidential & proprietary information
# 9
Global Technology Majors Have Taken Notice of B2B Tech In India,
Approaching $1B Software M&A Tipping Point
Chinese Investor
Consortium
AcquiredAcquired 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

10. Confidential & proprietary information
# 10
Indian SaaS Businesses Can
Capture Disproportionate
Share Of World SaaS
Market

11. 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

12. 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

13. 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

14. Confidential & proprietary information
# 14
Indian SaaS Companies Are Expanding Addressable Market In SMBs and
Asian Enterprises By Offering Compelling Product At A Competitive Price
$40
per agent /month(1)
$100
per agent
/month(2)
$300-
700
per month(6)
>$1000
per 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
$20-35
per user /month(3)
for CRM
$75-150
per user/month(4)
for CRM
$100-120
per month(5)
for Channel Manager
$150
per month(5)
for Channel Manager

15. Confidential & proprietary information
Thank You!
Nitin Bhatia
Managing Director
nbhatia@signalhill.in
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Tie Global and isprit
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