Indian Generative AI-based SaaS Startups Doubled Since 2021, Raised $590 Mn in Funding

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.

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 Guide to Hiring Certified Professionals that Fit Your SaaS Firm

For most organizations, hiring is easy. Companies post an ad, accept applications, screen out the eligible candidates, interview them, and get them on board. However, the narrative changes when you are hiring certified professionals for a SaaS firm.

To begin with, recruitment may be highly dynamic, depending on the company’s requirements. On the other hand, the job position may either be too vast or too specific to post an ad that makes absolute sense. Finally, it becomes even more crucial to choose the candidate who would fit right into your work culture.

Thus, it can be rather stressful to hire for a SaaS company. Fortunately, we have a practical guide on how you can hire certified professionals using an agile methodology. Read on to know more!

Start by Scoping Out Your Networks

It so happens that the top talent may not even be actively searching for a job when your need arises. So, whether you are looking to hire ruby on rails developers or a product manager, the best way to get started on your hunt is from their natural environment. Thus, you may start looking through open-source platforms, public forums, and professional networks to find someone.



If you have carried out recruitment for the same post or a similar profile, you may even connect with previously screened-in candidates to know if they would be interested. Sure, it may not offer the same instant gratification as posting a job ad and watching those applications stream in, but it does ensure that you will land someone who is experienced and more suitable.

Offer Suitable Perks and Remunerations

It is essential to understand that talent must not only be appropriately rewarded but also retained in the long run. Several candidates who apply for niche job roles may possess additional qualifications such as a product manager certification, which has a cost of its own. Thus, if your offer is sub-par and not in accordance with their capabilities, you will only face employee dissatisfaction, higher churn rate, and constant hiring cycles.



Pay is not the only factor that plays a vital role. Other perks, such as flexible work hours, remote working options, and performance-based incentives, could also tip the scales in your favor. Hence, be generous, and your employees will pay you back accordingly.

Build Brand Awareness and Credibility

When you are eyeing to hire certified professionals for your SaaS firm, you need to look the part. Start by developing an online presence and add credibility to your business. A half-baked website will only draw suspicion rather than resumes. Extend your digital presence to social media and platforms like LinkedIn to spread your business’ mission and vision.



Next, irrespective of whether you are a global enterprise or a bootstrap startup, you need to be known for your work culture. The idea is simple - like attracts like.

You will lure in the best professionals out there if you come off as a nurturing hotspot for talent. Whether it is through employee reviews or referrals or photographs, give the candidates an inside scoop on how your company operates.

Hire Right, Not Fast

After laying the foundation for your hiring process, it is time to pull up your socks and design an effective hiring strategy. The hiring process must flow smoothly and contain several checkpoints to measure and quantify progress.

Ascribe timelines to this workflow so that it does not end up as a long-drawn process. Further, take the time to respond to all the queries and follow-up emails that you may receive during the hiring process.

Typically, your hiring strategy must contain the following stages:

• Start by listing your job requirements on your website’s career pages, and post a few listings on other third-party websites.


• Include a detailed submission form that contains about 1- to 12 questions. It allows you to screen out the lazy candidates.


• Establish a point system to evaluate all the CVs and shortlist the ones with the highest scores. Conduct background checks on the candidates and verify their claims.


• Conduct an online technical assessment round followed by a teleconferencing round. Alternatively, you can schedule a timetable to evaluate these qualities in-person.


• Finally, follow up by sharing a paid project to test their practical skills.

While it may take as long as 6 to 8 weeks to fill the position, you will nevertheless score an excellent candidate who will justify your hiring decision.

Focus on Onboarding

Onboarding relates to integrating a fresh recruit in the organizational structure. However, it is not the same as orientation. For instance, orientation is a one-day event, while onboarding may take weeks or even months! Onboarding is crucial to utilize the full potential of a newly hired professional and to prepare them for the position against which they have been recruited.

Training the employee not only adds to their skillset and hones their talent, but it also enhances their productivity. Further, it alleviates their anxiety as they are up to speed on all the information regarding their job requirements. In it a nutshell, it lends clarity on how they can excel at their job.

Naturally, if onboarding contains repeatable processes, then you could automate or standardize it. You could have a dedicated dashboard where you create a list of tasks for the new employees and monitor their progress. Plus, it allows the new hire to share feedback or concerns that your firm can address immediately.

Conclusion

One of the best ways to understand any business process is by analyzing your competitors and cherrypicking sections that work for you. Locate other SaaS and scrutinize what they do differently. Remember to stay hyper-focused on your company requirements and the kind of workforce required to take your business to the next level.

Make smarter hiring decisions by first locating any bottlenecks and addressing the internal limitations before starting the process of recruitment. Alternatively, before hiring in-house talent, consider if you can make do with freelancers or temporary/ad-hoc employees.

Try to keep the process scalable to accommodate any future recruitments. Having a well-defined system will go a long way in helping your company grow.

The Guide To Hiring Certified Professionals That Fit Your SaaS

For most organizations, hiring is easy. Companies post an ad, accept applications, screen out the eligible candidates, interview them, and get them on board. However, the narrative changes when you are hiring certified professionals for a SaaS firm.

To begin with, recruitment may be highly dynamic, depending on the company’s requirements. On the other hand, the job position may either be too vast or too specific to post an ad that makes absolute sense. Finally, it becomes even more crucial to choose the candidate who would fit right into your work culture.

Thus, it can be rather stressful to hire for a SaaS company. Fortunately, we have a practical guide on how you can hire certified professionals using an agile methodology. Read on to know more!

Start by Scoping Out Your Networks

It so happens that the top talent may not even be actively searching for a job when your need arises. So, whether you are looking to hire ruby on rails developers or a product manager, the best way to get started on your hunt is from their natural environment. Thus, you may start looking through open-source platforms, public forums, and professional networks to find someone.

LinkedIn is a great platform to find certified professionals for a SaaS firm. By using the LinkedIn search bar, you can filter your results by job title, company, or location. You can also use the advanced search options to find certified professionals who have specific skills or experience.

Once you've found a few candidates that you'd like to reach out to, you can get their email addresses using an email finder tool. This will allow you to contact them directly about the opportunity.

If you have carried out recruitment for the same post or a similar profile, you may even connect with previously screened-in candidates to know if they would be interested. Sure, it may not offer the same instant gratification as posting a job ad and watching those applications stream in, but it does ensure that you will land someone who is experienced and more suitable. 

Offer Suitable Perks and Remunerations

It is essential to understand that talent must not only be appropriately rewarded but also retained in the long run. Several candidates who apply for niche job roles may possess additional qualifications such as a product manager certification, which has a cost of its own. Thus, if your offer is sub-par and not in accordance with their capabilities, you will only face employee dissatisfaction, higher churn rate, and constant hiring cycles.

Pay is not the only factor that plays a vital role. Other perks, such as flexible work hours, remote working options, and performance-based incentives, could also tip the scales in your favor. Hence, be generous, and your employees will pay you back accordingly.

Build Brand Awareness and Credibility

When you are eyeing to hire certified professionals for your SaaS firm, you need to look the part. Start by developing an online presence and add credibility to your business. A half-baked website will only draw suspicion rather than resumes. Extend your digital presence to social media and platforms like LinkedIn to spread your business’ mission and vision.

Next, irrespective of whether you are a global enterprise or a bootstrap startup, you need to be known for your work culture. The idea is simple - like attracts like.

You will lure in the best professionals out there if you come off as a nurturing hotspot for talent. Whether it is through employee reviews or referrals or photographs, give the candidates an inside scoop on how your company operates. 

Hire Right, Not Fast

After laying the foundation for your hiring process, it is time to pull up your socks and design an effective hiring strategy. The hiring process must flow smoothly and contain several checkpoints to measure and quantify progress.

Ascribe timelines to this workflow so that it does not end up as a long-drawn process. Further, take the time to respond to all the queries and follow-up emails that you may receive during the hiring process.

Typically, your hiring strategy must contain the following stages:

• Start by listing your job requirements on your website’s career pages, and post a few listings on other third-party websites.
• Include a detailed submission form that contains about 1- to 12 questions. It allows you to screen out the lazy candidates.
• Establish a point system to evaluate all the CVs and shortlist the ones with the highest scores. Conduct background checks on the candidates and verify their claims.
• Conduct an online technical assessment round followed by a teleconferencing round. Alternatively, you can schedule a timetable to evaluate these qualities in-person.
• Finally, follow up by sharing a paid project to test their practical skills.

While it may take as long as 6 to 8 weeks to fill the position, you will nevertheless score an excellent candidate who will justify your hiring decision.

Focus on Onboarding

Onboarding relates to integrating a fresh recruit in the organizational structure. However, it is not the same as orientation. For instance, orientation is a one-day event, while onboarding may take weeks or even months! Onboarding is crucial to utilize the full potential of a newly hired professional and to prepare them for the position against which they have been recruited.

Training the employee not only adds to their skillset and hones their talent, but it also enhances their productivity. Further, it alleviates their anxiety as they are up to speed on all the information regarding their job requirements. In it a nutshell, it lends clarity on how they can excel at their job.

Naturally, if onboarding contains repeatable processes, then you could automate or standardize it. You could have a dedicated dashboard where you create a list of tasks for the new employees and monitor their progress. Plus, it allows the new hire to share feedback or concerns that your firm can address immediately.

Conclusion

One of the best ways to understand any business process is by analyzing your competitors and cherrypicking sections that work for you. Locate other SaaS and scrutinize what they do differently. Remember to stay hyper-focused on your company requirements and the kind of workforce required to take your business to the next level.

Make smarter hiring decisions by first locating any bottlenecks and addressing the internal limitations before starting the process of recruitment. Alternatively, before hiring in-house talent, consider if you can make do with freelancers or temporary/ad-hoc employees.

Try to keep the process scalable to accommodate any future recruitments. Having a well-defined system will go a long way in helping your company grow.

India’s Software-as-a-Service (SaaS) Market May Grow To $1 Bn

SaaS or Software as a Service industry is expected to see a tremendous rise in the coming 4-5 years. According to a research report by Nasscom, it is hoped that this industry will grow to thrice its size to reach $1billion by the year 2020. And further, it is expected to cross even $50 billion in the next 10 years alone. According to this report, in this sector startups are the front runner and seem to have taken the lead. In the 150 firms in India providing these services about 50% of them are startups itself. Startups are the ones that have taken the limelight here. In 2014 alone, startups had received $170 million dollars worth of investment from 22 deals. This itself was double than 2013, which just saw 11 such deals. Investors can also smell the storm that this sector is brewing and want to grab onto their boats and sail to the top with them.

One of the major advantages that startups in India in this sector have are the engineering and product management skills that we possess. These skills alone will take these startups on to the road of success. According to the report the US and Europe are responsible for at least 80% of the demand for the Indian SaaS companies. This demand for SaaS is expected to increase due to rise in small and medium businesses in the US, so this will be an added opportunity for Indian startups to capture.

This increase in demand towards the SaaS model can be attributed to the fact that it is an economically a more viable option in comparison. This is because there are reduced amount of services and support needed from IT compared to a premise software solution.

According to Rajan Anandan, VP and managing director, Google Southeast Asia and India, "Cloud computing is one of the top technology investment trends of this decade with venture funding for purpose-built SaaS solution exceeding USD 18 billion in the last four years. Indian startups have an edge, as mobility is also becoming a key requirement by SMBs for SaaS".

With close to 8 million Small and medium businesses (SMBs) in India, this market segment presents a huge opportunity for SaaS vendors and solution providers. In conclusion, this industry seems to on the rise and will give great returns, due to increasing demand from not just within India but also from across the world and especially from the US and Europe.