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Indian B2B SaaS Forges Ahead to Becoming a “Product Nation”, Fueled by DeepTech: EY-nasscom Report

AI/MLIndian B2B SaaS Forges Ahead to Becoming a "Product Nation", Fueled by DeepTech: EY-nasscom Report

99% of Indian B2B SaaS companies profiled have embraced DeepTech innovations, with 1 out of 4 (25%) being inventive DeepTech
AI/ML is the most leveraged DeepTech (54% of use cases), followed by big data/ descriptive analytics (39%) and intelligent automation (7%)
Breakthrough Indian B2B SaaS companies, who are inventive DeepTech focused, can potentially unlock sustained ARR CAGR of 30-50%

New Delhi, 22 August 2023:  Exploring the central role of DeepTech in the ascent of Indian B2B SaaS, EY India in collaboration with nasscom, has launched the report titled, “Breaking ground: unravelling the DeepTech potential in Indian B2B SaaS”.  The report, based on extensive analysis of 201 leading Indian B2B SaaS companies, unveils the dynamics of DeepTech adoption by Indian B2B SaaS (Software-as-Service) firms. It also highlights the role of DeepTech in potentially driving breakthrough growth for inventive B2B SaaS companies, i.e., firms focused on developing intellectual property.

Inherent DeepTech & AI-Centricity in Indian B2B SaaS

A noteworthy trend within the Indian B2B SaaS landscape is the marked integration of DeepTech solutions, strategically tailored to meet evolving customer use cases. As per the report findings, 99% of Indian B2B SaaS companies studied have embraced DeepTech innovations as a strategic approach to address their clients’ needs and challenges. Foremost among these technologies is AI/ML (54% of use cases), heralding the most substantial adoption, followed by Big Data/Descriptive Analytics (39%) and Intelligent Automation (7%).

With a growing push towards an AI-led digital transformation, specific categories such as predictive analysis (especially in non-real-time scenarios), Conversational AI, Computer Vision, and Generative AI have garnered heightened focus among Indian B2B SaaS firms. Moreover, a predominant portion of Indian B2B SaaS companies is focused on leveraging DeepTech to serve horizontal application areas with top functional coverage across Sales & Marketing, Human Resources and Operations & Supply Chain.

DeepTech can be the trigger for breakthrough future growth of Indian B2B SaaS companies

As per the report, breakthrough Indian B2B SaaS companies, who are inventive DeepTech focused, can potentially unlock ARR (Annual Recurring Revenue) CAGR of 30-50% on a sustained basis. The report also uncovered that 1 out of 4 (25%) of the Indian B2B SaaS companies studied were inventive DeepTech focused, with 1400+ patents filed between them over the past half-decade, compared to only 574 patent filings over the preceding decade.

Nitin Bhatt, Technology Sector Leader, EY India said, “High-growth Indian B2B SaaS companies are inherently DeepTech and AI-centric, and investments in inventive and next-generation technologies help trigger differential and breakthrough growth for such organizations. As Indian companies transform to challenge global SaaS leaders and gain market share, inventive DeepTech and intellectual property advantages can enable premium positioning and competitive advantage. Indeed, DeepTech SaaS companies in our study demonstrated that an ‘Invent in India’ mindset can drive product innovations that are distinctive and valued by top-tier customers across the world. Going forward, a sharper focus on developing DeepTech talent and improved access to patient capital will serve to accelerate India’s SaaS leadership on the global stage.”

The scale of inventive DeepTech in Indian B2B SaaS can be accelerated even further with a nurturing ecosystem. Availability of DeepTech talent (80%), patient capital (40%) and DeepTech infra (27%) are the top three challenges highlighted by Indian B2B SaaS companies.

Sangeeta Gupta, Sr. Vice President, and Chief Strategy Officer at nasscom said, “DeepTech has the potential to profoundly propel India’s growing digital economy by creating a seismic transformation across all facets of the nation’s narrative. Empowered by the growing democratization and accessibility of deep technologies, Indian B2B SaaS enterprises are poised to seize a prominent role in the global B2B tech landscape. As we move ahead, prioritizing innovative and inventive DeepTech and at the same time addressing the growth impediments will be fundamental in building a globally competitive and the most attractive DeepTech-led B2B SaaS destination in the world.”

The Future Course

Various ecosystem stakeholders are already at play to nurture the country’s DeepTech ecosystem. Strategic partnerships with the government and academia, developing inventive DeepTech talent at scale, democratizing research, design and training modules in AI/ML, patient seed capital, and improving infrastructure that encourages a seamless exchange of ideas, expertise and resources will further enable a nurturing environment for transformative DeepTech advancements in the country.

– End –

Story from www.ey.com

Disclaimer: The views expressed in this article are independent views solely of the author(s) expressed in their private capacity.

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