Indian SaaS startups poised to create 100 new AI unicorns: Report

Bengaluru, March 19: Indian AI software-as-a-service (SaaS) startups are poised for the next wave of innovation, helping create 100 new AI unicorns, a new report showed on Tuesday.

The convergence of SaaS, AI and India presents a massive opportunity.

However, it's crucial to recognise that building platforms and models requires significant investment. Therefore, the most promising opportunities lie in "white spaces" – niche markets currently overlooked by established players, according to the report by investment fund WestBridge Capital with Upekkha, a leading SaaS fund and accelerator.

“India's booming SaaS industry, valued at a trillion dollars, is set to be completely reshaped by GenAI. This technology has the potential to propel India to a leadership position in the global AI landscape,” said Prasanna Krishnamoorthy, Managing Partner, Upekkha.

The software landscape is undergoing a fundamental shift driven by generative artificial intelligence (GenAI). This is poised to redefine every aspect of how software is built and used.

The traditional IT services industry will merge with the SaaS model, offering a combined ‘Software and Services’ approach for the next generation of solutions, the report noted.

“Generative AI is swiftly transforming the UI/UX (user interface/user experience) landscape for businesses. It marks a rapid advancement, with UI serving as a key factor for differentiation in enterprise applications,” said Rishit Desai, partner at WestBridge Capital.

Thiyagarajan Maruthavanan, Managing Partner, Upekkha said that GenAI is a platform shift.

“When platform shifts happen, just like how the mobile OS changed with Android and iOS or from on-prem to cloud, it leads to software being rewritten for the new stack. Given that this platform change affects every layer of the tech stack, categories are bound to get redefined,” Maruthavanan added.