Technology
WELLINGTON :India’s got the next big thing in tech, and it could be worth $1 trillion
WELLINGTON : More than two decades ago, India began its transformation into a global IT powerhouse, ushering in an era of wealth and job creation never before seen in the country.
Now, Asia’s third largest economy is ready for the next big frontier in tech: Coming up with a new generation of software companies like Zoom or Slack.
The Covid-19 pandemic has forced business around the world to make huge investments in digital infrastructure, furthering the influence of companies providing software-as-a-service, or SaaS. Businesses spent an extra $15 billion per week last year on tech as they scrambled to create safe remote working environments, according to a KPMG survey.

SaaS companies provide web-based applications that take care of everything from how secure the software is to how well it performs. Some of the world’s most well-known SaaS companies include Zoom (ZM), SAP Concur and Salesforce (CRM), the American behemoth that owns workplace messaging app Slack.
India’s software-as-a-service industry could be worth $1 trillion in value by 2030 and create nearly half a million new jobs, according to a recent report compiled by consulting firm McKinsey & Co. and SaaSBoomi, a community of industry leaders.
There are nearly a thousand such companies in India, of which 10 are unicorns, or startups worth at least $1 billion, the report said.
“This can be as big an opportunity as the IT services industry was in the 90s,” said Girish Mathrubootham, CEO of Freshworks, India’s best-known SaaS company. It filed for an IPO last month, joining a string of other major Indian tech unicorns that are going public this year.
Freshworks was founded more than a decade ago in the southern Indian city of Chennai.
Like Salesforce, it provides software to help companies manage relations with their customers. It’s also India’s oldest unicorn in the sector, having raised funds from investors such as Tiger Global and Accel, and has more than 50,000 customers. The company was last valued at $3.5 billion in a 2019 funding round, according to data firm Tracxn.
Other Indian SaaS firms have found traction by focusing on niche businesses. Zenoti, for example, is a unicorn that builds software for the spa and beauty salon industry.
Of India’s 10 SaaS unicorns, six reached that milestone in 2020, and investors around the world are paying attention. Last year, investors pumped $1.5 billion into Indian SaaS companies, four times more than in 2018 or 2019, according to the SaaSBoomi report.
Bullish investors
Investors are excited about SaaS because of the “massive adoption” of software over the last decade, according to Mohit Bhatnagar, managing director of Sequoia Capital India.

Girish Mathrubootham, CEO and founder of Freshworks, a “SaaS” or “Software-as-a-service” company founded in Chennai, India.
While India is a small player in the global SaaS market, investors say the country could eventually dominate the sector because of two things: its vast pool of English-speaking developers, and the relatively low cost of hiring them.
Thanks to the rise of India’s IT industry, software engineering has become one of the most sought-after career options in the country.
“India actually has one of the largest developer communities in the world,” Bhatnagar told CNN Business. Many of them have worked at some of the biggest global tech companies.
Abhinav Asthana, the co-founder of Postman, pointed to his experience working as an intern at Yahoo in Bengaluru as instrumental in the decision to build his product.
He came up with the idea to build a tool that would simplify the API (Application Programming Interface) testing process. An API is a programming code that defines how two applications communicate with each other, and Postman says it has made it easier for engineers to work together as they design and build their APIs.
“We saw how software was created at these global companies, and we saw API was a key problem,” Asthana told CNN Business.
Now, Postman is India’s most valuable SaaS unicorn, with a valuation of $5.6 billion.
International clients, Indian engineers
The low cost of operating in India is a big plus. According to a report by consulting firm Bain & Company, the salary of entry-level developers in India is 85% less than their counterparts in the United States.

Abhinav Asthana, CEO and co-founder of Postman in India.
“If you are building a SaaS company in the US, it is better to have a million-dollar client rather than a $10,000-client because you need to pay for sales and marketing in that country,” said Prasanna Krishnamoorthy, managing partner at SaaS accelerator Upekkha. “When you are serving customers from India, you can have these small and mid-sized companies, as well as large ones.”
Most SaaS companies focus on global clients, similar to the strategy that was followed by India’s IT giants such as TCS and Infosys (INFY). Investors see this as a welcome change, since most of India’s oldest unicorns — from Flipkart to Paytm — have focused primarily on the domestic market.
Almost 98% of Fortune 500 companies use Postman’s products, according to Asthana, while Freshworks’ first client was based in Australia.
SaaS firms are much better placed to go global than e-commerce companies like India’s Flipkart, for example. They write software once, and then are able to use it multiple times.

India is churning out billion-dollar startups. Now they need to start making money
“For a Flipkart you need billions of dollars [to grow internationally], but for a Freshwork you need much less capital to go global,” said Mathrubootham, who is also an investor in Postman. This is because e-commerce firms require a ton of money to set up physical operations elsewhere — they have to hire delivery drivers, rent warehouses and buy inventory.
Bhatnagar of Sequoia Capital said that Indian software entrepreneurs “mastered” the art of “remote sales” fairly early. “Honestly, in this last two years, the whole world has had to understand how to do better remote sales,” he added.
Despite the euphoria, there are some hurdles Indian companies have to overcome before they can deliver on the $1 trillion promise.
Indian engineers trained in the IT services industry may find it hard to develop the discipline required to build a product-focused company.
In IT services, “you are selling bodies and you say yes to everything the customer says,” said Krishnamoorthy. SaaS companies, on the other hand, have to say no to 99% of [potential] customers, he added.
And India’s startup ecosytem is still relatively immature when compared to Silicon Valley. Despite the massive size of some homegrown unicorns, Mathrubootham said that the country does not have a “global tech powerhouse product brand.”
But he hoped that future SaaS companies can change that.
“It is my personal dream to see India as a product nation,” he added.
Technology
CAIRO: Indian-Origin Teen, Son Of IIT-JEE Topper, Wins Gold At World’s Toughest Programming Contest
CAIRO: Agastya Goel, a 17-year-old Indian-origin student from California, has won his second gold medal at the 36th International Olympiad in Informatics (IOI), which took place in Egypt. Agastya, son of Stanford professor Ashish Goel, secured the fourth overall rank at the prestigious contest, also dubbed as the world’s toughest programming competition for high school students.
Agastya scored 438.97 out of 600, while Kangyang Zhou of China topped the event with a perfect score of 600. A total of 34 students were awarded gold medals this year, including fellow Indian participant Kshitij Sodani, who ranked 21st.
This marks the 17-year-old’s second gold at the IOI. His father, Ashish Goel, made waves in 1990 by topping the IIT-JEE exam before going on to build a distinguished career at companies like Twitter and Stripe.
Who is Agastya Goel?
Agastya Goel, a junior at Henry M Gunn High School in Palo Alto, California, loves physics, computer science, and music. His hobbies include tennis, hiking, stargazing, and playing the guitar and piano.
Agastya’s interest in physics began at a young age, with his father introducing him to the subject during car rides and hikes. One memorable experience was learning about projectile motion while playing Angry Birds. This sparked a fascination with physics that has only grown stronger over the years.
Agastya’s competitive spirit was ignited through the USACO competition series, which he started preparing for in 6th grade. His hard work earned him a spot at the USACO training camp in his freshman year, followed by selection for the US IOI team.
Initially, Agastya considered majoring in computer science, but after exploring physics, he discovered a new passion. He spent 14 days intensively studying physics over winter break and was hooked.
Technology
CALIFORNIA: PM Modi Put India On World Map As Credible Innovator- IT Industry Leaders
CALIFORNIA: Indian-origin business leaders from the IT industry lauded Prime Minister Narendra Modi’s leadership for putting India on the global map as a “credible innovator and leader” for all nations to invest in and grow.
Speaking at the Indiaspora AI Summit 2024 on ‘Can Artificial intelligence be good force for future or not’ at the University of Stanford on April 26, Informatica CEO Amit Walia said, “India is perceived very differently in the global space. It’s a space of innovation. It’s a space of human capital. It’s a space of progress and innovation. And as we look forward, what Modi has been able to do is put India into the global map as a credible innovator, leader for all countries to invest in and grow.”
Speaking at the same event, Elastic CEO Ashutosh Kulkarni said that PM Modi and the government have been doing amazing work.
Mr Kulkarni said, “The Prime Minister and the government has been doing some amazing work and their focus on being open to innovation, their focus on industry, their focus on bringing the population, India is now one of the, it is the largest, most populous country in the world and bringing that population towards progress, the way they have tapped into the potential of this country has just been fantastic.”
Calling PM Modi’s era “amazing,” Mayfield Fund Managing Partner Navin Chaddha praised PM Modi’s leadership for ties between India and the US and his ability to connect the Indian diaspora which he stressed is doing extremely well in the tech industry. He noted that India is making progress in using technology and improving its infrastructure.
Navin Chaddha said, “The Modi era has been amazing, the kind of relationship they’ve been able to build with the United States. And to be able to connect the Indian diaspora, which is doing extremely well in the tech industry, hats off to them. And also the progress India is making in using technology, improving the infrastructure is just amazing. So, Mr Modi, keep doing what you’re doing.”
Rohit Jain, Speaker and Moderator – CIO, Harvard Business School, called on PM Modi to increase his guarantee, as he has always delivered. The event on Artificial Intelligence was organised to deliberate and discuss artificial intelligence.
He said, “Mr Modi needs to increase his guarantee because he’s always been delivering. So, I think his promises have been 100 per cent true. So, he now needs to promise 110 per cent and then again he’ll deliver on that. Mr Modi, thank you for what you have done, not only for India, but for the world.”
Priya Rajan, Managing Director, National Venture Coverage and Business Development, MUFG lauded PM Modi’s leadership in the entrepreneurial ecosystem. He stated that a number of VCs across the globe want to invest in India.
She said, “I see the Modi magic play is in the entrepreneurial ecosystem, which is an adventure ecosystem. So you can see the number of VCs now wanting to invest, not just where in India, investing in India, but world investors around the world wanting to do things. And you’re seeing kind of US, a ton of US global investors now setting up shops in India. I think that’s all coming back to what Modi magic has created.”
At the event, prominent Indian diaspora, along with the esteemed corporate leaders from the US shared their insights on the topic “Can Artificial Intelligence be a force for future or not.”
Rajya Sabha MP Satnam Singh Sandhu participated in the event. Notably, PM Modi has been advocating that artificial intelligence can provide a great support to help humanity’s development in the 21st century.
Taking to X, Satnam Singh Sandhu stated, “Indiaspora AI Summit, Stanford University, USA: Delighted to be a part of the summit where we had @ericgarcetti, US Ambassador to India, Indian Diaspora and business leaders from IT sectors who reiterated how PM @narendramodi Ji is leveraging AI to shape nation’s future strategy to build Viksit Bharat by 2047.”
“They highlighted PM Modi’s tech-savvy approach and his efforts to promote AI applications in various sectors like agriculture, health-care, and education for social development and inclusive growth. They also condemned the Western bias against India to rank them lower in parameters like Ease of doing business, and cite the irregularities while computing such rankings,” he added.
Earlier in December, PM Narendra Modi said that artificial intelligence is a dynamic issue and that India is working on creating a global framework for AI. He made the remarks while interacting with the participants of the Grand Finale of the Smart India Hackathon.
Speaking to the participants via video conferencing, the Prime Minister said, “AI (Artificial Intelligence) is a very dynamic issue. If one solution is brought in, the mischievous people will find another way. We have to be very alert to any new technology. It can be very useful if used within rules, but if it is used in the wrong way, it can create a lot of problems.”
“We all are aware of the generative AI-created deep fake videos that look completely real. Hence we need to be more alert before believing any photo or video. India is working on creating a global framework for AI,” said PM Modi.
Technology
SILICON VALLEY: All About Pavan Davuluri, New Head Of Microsoft Windows
SILICON VALLEY: Pavan Davuluri, an IIT Madras graduate, has been appointed the new head of Microsoft Windows and Surface. He succeeds Panos Panay, who left for Amazon last year. Mr Davuluri previously oversaw the Surface group and now leads both Windows and Surface departments.
Rajesh Jha, Microsoft’s head of experiences and devices, said, “As part of this change, we are bringing together the Windows Experiences and Windows + Devices teams as a core part of the Experiences + Devices (E+D) division. This will enable us to take a holistic approach to building silicon, systems, experiences, and devices that span Windows client and cloud for this AI era.”
“Pavan Davuluri will lead this team and continue to report to me. Shilpa Ranganathan and Jeff Johnson and their teams will report directly to Pavan. The Windows team will continue to work closely with the Microsoft AI team on AI, silicon, and experiences,” he said.
Who is Pavan Davuluri?
- Pavan Kumar Davuluri is an IIT Madras graduate. He completed his post-graduation from the University of Maryland, according to his LinkedIn
- Mr Davuluri began his career at Microsoft as a Reliability Component Manager in 2001.
- Mr Davuluri has held various leadership positions over his 23-year tenure at Microsoft, working across PC and Xbox hardware, Surface, and Windows.
- Pavan Davuluri took on the role of corporate vice president for Windows and Silicon & Systems Integration in 2021, overseeing efforts to optimise Windows for Arm-based devices.
- Mr Davuluri was recently assigned to lead Windows engineering alongside his existing responsibilities in Microsoft’s hardware endeavours. He will lead a dedicated team developing silicon systems for Microsoft’s Windows and Surface products.
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