Context on SaaS Software - as - a - Service (SaaS) is a subset of software products industry which itself is part of broader IT & ITeS sector IT & ITeS IT services ITeS - BPO S oftware products Hardware Parameters SaaS Products On - Premise Products • Cloud based • On – premises Delivery Model • Third - party provider • Organization Software Host • Subscription model • On - premise license Licensing Model • Third - party provider - Performance management Functionalities to be • Third - party provider – Access, maintenance, security, handled (internal / availability and performance management • Organization – Access, maintenance, security and third - party) availability • Responsibility of SaaS provider • Responsibility of organization Compliance Focus area of the Source(s): Nasscom , ICSI, Secondary research, 1Lattice / Sorin analysis © 1Lattice | 6 report SaaS Composition SaaS is now a crucial backbone of nearly every industry, offering diverse application use cases What does SaaS include ? Customer Relationship Enterprise Content Collaboration & Management (CRM) Resource Planning Management Communication & Sales Human Capital Supply Chain Cybersecurity & Workflow Management Management Automation Management (HCM) (SCM) Data Analytics Finance & Testing tools Development Tools and Business Accounting Intelligence What does SaaS not include ? IT Services incl., ITeS , IT consulting, maintenance of B2B / B2C online marketplace platforms hardware components, etc. Source(s): Secondary research, 1Lattice / Sorin analysis © 1Lattice | 7 SaaS Buyer Persona While small scale businesses typically leverage self service SaaS tools, enterprise businesses adopt high - end tools with complex integrations & personalization Parameters Small scale businesses Mid scale businesses Enterprise businesses No. of • <200 • 200 – 1,000 • >1,000 employees • High security and compliance • Scalability • Cost - effective solutions • Customization options • Security • Ease of usage • Integration with complex IT Functional • Integration with existing systems infrastructure • Automation to streamline tasks Needs • Advanced features for specific • Robust data analytics • Accessibility and mobility needs • Data - driven innovations • Minimal device specifications • Strong customer support • Strong customer support • Personalized account • Basic accounting solutions management supported CRM • Full suite of salesforce and customer management tools • Simple CRM or contact • AI - powered customer service management software and support • Business Intelligence tools for multiple markets • Simple project and workflow • Flexible workflow configurations Use cases management solutions • Multiple workflow management • Complex automation and and automation tools • E - commerce enablers integrations • Vertical specific HRM solutions • Cybersecurity • Simple integrations • Basic collaboration tools • Basic HRM tools • Vertical specific ERP and HRM solutions Source(s): Secondary research, 1Lattice / Sorin analysis © 1Lattice | 8 SaaS Evolution SaaS 1.0 involved generic cloud storage and computing solutions; SaaS 3.0 has expanded to vertical niches and embedded AI/ML solutions SaaS 3.0 • Successful emergence of AI/ML based SaaS use cases • Continuous R&D to improve and evolve SaaS 2.0 new SaaS models like API led, Micro, etc. • Evolution of horizontal solutions like • Rapid adoption and demand for vertical - CRM, HRM, etc. specific SaaS solutions • Rapid adoption across sectors like SaaS 1.0 healthcare, finance, retail, etc. • Emergence of vertical - specific SaaS • Evolution of cloud storage and solutions computing • R&D for AI/ML integrated SaaS • Improved and affordable infrastructure solutions for SaaS applications • High buzz in market due to visible cost benefits and flexibility Prior to 2005 2020 and beyond 2005 – 2020 Source(s): Secondary research, 1Lattice / Sorin analysis © 1Lattice | 9 Global SaaS Market Overview Global SaaS market is projected to grow at 19% CAGR; estimated to reach US$ ~460B by 2028 Global SaaS market in CY28 expected to be ~2.4X of CY23 SaaS America is the most sophisticated SaaS market with ~50% of market overall market share SaaS market share by region Global SaaS market size (CY23, %) (CY18 – 28P, US$ B) Middle East 463 CAGR & Africa 19% 1% Asia Pacific CAGR 20% 14% 195 167 146 133 121 100 America 49% Europe CY18 CY19 CY20 CY21 CY22 CY23 CY28P 30% Key Growth Drivers Shift to Hybrid AI/ ML Integration Working Model C loud adoption Global expansion Source(s): Tracxn , Gartner, Expert discussions, Secondary research, 1Lattice / Sorin analysis © 1Lattice | 11 Global SaaS Investment Overview ~US$ 900B has been invested in SaaS from CY10 - 23; ~50% of total investment over the past 4 years Investments in global SaaS companies have seen a significant Major takeaways in Global SaaS growth in the recent years Global Investments in SaaS (CY10 - 23, US$ B) ~53% SaaS companies located in the US 196.0 85%+ VC investments to B2B SaaS models in last 3 years 112.0 112.0 104.0 88.3 Cybersecurity Major sector of SaaS B2B investments since 62.3 2021 47.9 40.7 39.4 38.0 29.7 13.8 9.6 9.7 ~57% Software unicorns are SaaS start - ups CY10 CY11 CY12 CY13 CY14 CY15 CY16 CY17 CY18 CY19 CY20 CY21 CY22 CY23 Source(s): Tracxn , 1Lattice deal database, Secondary research, 1Lattice / Sorin analysis © 1Lattice | 12 Global Horizontal SaaS Landscape Horizontal SaaS offers generalized solutions typically catering to functional needs across various industries • Horizontal SaaS solutions cater to a broad range of industries and business functions , offering versatile applications that are not industry - specific and serve a diverse user base with generalized features applicable across various sectors Horizontal SaaS Content Enterprise Resource Collaboration & Finance & Testing Tools & Data CRM & Sales Management Planning (ERP) Communication Accounting Analytics, BI Human Capital Supply Chain Workflow API & Data Cybersecurity & Others Management (HCM) Management (SCM) Automation Management Management Note(s): Others include cloud - based platforms, survey tools, and customer engagement platforms Source(s): Tracxn , Secondary research, 1Lattice / Sorin analysis © 1Lattice | 13 Global Vertical SaaS Landscape Vertical SaaS solutions provide industry - specific products catering to relatively niche use cases • Vertical SaaS solutions are ones that are designed and tailored for specific industries or niche markets, addressing their unique needs and workflows vertically rather than offering a broad, horizontal application Vertical SaaS Logistics Education Travel & Hospitality Consumer & Retail Healthcare Auto., Manufacturing & Food & Agriculture Real estate & Construction Media & Entertainment Others Electronics Chownow Vimeo Deliverect Samba Note(s): Auto. stands for Automotive, Others include finance, ML/AI and cloud - based platforms, Source(s): Tracxn , Secondary research, 1Lattice / Sorin analysis © 1Lattice | 14 Global AI enabled SaaS Landscape Advent of AI native SaaS; Original SaaS pioneers also integrating AI into their existing SaaS products AI first companies Original SaaS Pioneers Original SaaS Pioneers integrating AI enabled Vertical SaaS companies AI AI enabled Horizontal SaaS companies Source(s): Tracxn , Secondary research, 1Lattice / Sorin analysis © 1Lattice | 15 Growth Drivers of SaaS by Industry Convergence of digitalization, automation, real - time analytics, security and compliance is expected to fuel the rise of SaaS across various industries BFSI • Dynamic regulatory compliance • Digitized workflows to minimize paper - based processes • Robust & automated security tools Travel and Tourism Healthcare & Wellness • Property management, pricing and • AI/ML powered diagnostic and revenue optimization pathological solutions • Robust cybersecurity to encrypt • Increased demand for customer data on digital platforms teleconsultation and telemedicine • Omnichannel marketing tools • Strong security tools for patient Illustrative data protection use cases Manufacturing & Automotive Logistics • Facilitates vital V2V and V2I • Real - time route optimization communications • Predictive analytics for optimization of • Flexible scaling to support asset - light supply and demand business models • Digitalization of supply chain process for • I nteroperating systems to boost increased efficiency manufacturer - vendor relations Source(s): Expert discussions, Secondary research, 1Lattice / Sorin analysis © 1Lattice | 16 Global SaaS Trends Vertical SaaS offerings, LCNC platforms, and hybrid cloud solutions are scaling up rapidly in the global SaaS market Enablers for SaaS adoption globally Trends Description Key observations • Tailored for specific industries by experts • Y - o - Y increase of 15% in VC funding raised by Rise in Vertical SaaS vertical SaaS companies in 2023 • Reduces need for complex customizations in generic software • Organizations actively seek tools to boost teamwork Growing Need for • 44% increase in usage of collaborative tools like • Businesses with collaborative teams more likely to achieve Slack, Teams, etc. post COVID 19 Collaboration Software high performance • Embracing LCNC platforms featuring user - friendly drag - and - Rise in adoption of LCNC • 90% reduction in app development time by drop interfaces and Hybrid Cloud LCNC platforms Platforms • Hybrid cloud adoption emphasizing on flexibility and security • Rapid adoption of different models like API led, Unbundled, Rise in adoption of • IT organizations leveraging API led SaaS has Micro etc. increased from 39% in 2019 to 46% in 2023 different models • Cater to demands for flexibility , customization , and innovation • Implementation of zero - trust architecture Advancements in SaaS • Increase in usage of zero - trust architecture by ― Treats users and devices as untrustworthy until proven security and User 10% of large enterprises by 2026, from less than otherwise 1% in 2023 Education • Emphasis on user education to avoid human errors • Investments in energy - efficient data centers • 2030 targets announced by Google and Rising Interest in Microsoft to source and match zero - carbon • U sage of advanced cooling methods and renewable energy Sustainable SaaS electricity on 24/7 basis sources Note(s): LCNC stands for Low Code/ No Code Source(s): Expert discussions, Secondary research, 1Lattice / Sorin analysis © 1Lattice | 17 India SaaS Evolution How SaaS has evolved in India over the years Growth trends of SaaS • Future - outlook suggests sustained growth and • “Digital India" further global boosts SaaS growth competitiveness • Postman – fastest • Projected market size SaaS company to ~US$ 37B by CY28 achieve unicorn status • Investments growing from US$ 4.9B in CY16 to US$ 11.3B in CY20 • Entry of businesses with emphasis on nd • India becomes 2 horizontal or largest SaaS infrastructure - related use cases ecosystem globally • 500+ pure - play • 20 unicorn startups • Early adopters focus on SaaS companies • Chargebee , Zenoti , in India CRM, collaboration in India etc. emerged • Freshworks public tools • Focus on • Encouragement for listing on Nasdaq DevOps, cloud adoption • Start of AI/ML Cybersecurity, across sectors integration in SaaS Automation • Druva , Uniphore , industry products Freshworks introduced • Zohoʼs revenues • 40% of unicorns in the industry hit US$ 100M recognized on 2021 • Indian businesses • Inception of SaaS 2.0 • Rise of vertical - Cloud 100 list recognize SaaS benefits technology SaaS models • Zoho , Kissflow ( Organgescape ) and Manthan launched Emergence Early stage Consolidation Blooming Growth Prior to 2005 2006 - 2010 2011 - 2015 2016 - 2020 2021 and beyond Source(s): Expert discussions, Secondary research, 1Lattice / Sorin analysis © 1Lattice | 19 Indian Origin SaaS Overview Indian SaaS market is expected to reach ~US$ 37B by CY28; Market share expected to increase from 6% in CY23 to 8% in CY28 Indian SaaS Market is expected to grow at a CAGR of ~26% I ndia is the second largest SaaS ecosystem in the world to stand at US$ 37B with ~2,000 companies based out of India Indian SaaS Market 2nd (CY18 – 28P, US$ B) Largest SaaS ecosystem in the world, due to high rise in number of SaaS companies CAGR 26% ~2,000 37 SaaS companies based out of India Higher growth rate due to nascency and lower base effect of SaaS industry ~55% Indian SMBs digitized their processes in last 3 years CAGR 50% 12 10 7 13.2M 5 4 Developers present by CY23, fueling India’s stance to 2 disrupt the DevOps market CY18 CY19 CY20 CY21 CY22 CY23 CY28P 15 - 20% Global market 2% 3% 4% 5% 6% 6% 8% Global AI workforce housed in India, due to high AI share product development Source(s): Tracxn , Gartner, Secondary research, 1Lattice / Sorin analysis © 1Lattice | 20 Horizontal SaaS companies from India There are several horizontal SaaS companies built from India catering to the world across a plethora of use cases Select Horizontal SaaS companies Enterprise Resource Collaboration & Finance & CRM & Sales API Management Testing Tools Planning (ERP) Communication Accounting Human Capital Supply Chain Workflow Content Data Analytics and Cybersecurity Management (HCM) Management (SCM) Management Management Business Intelligence Refly Editor Note(s): Companies founded in India Source(s): Tracxn , Secondary research, 1Lattice / Sorin analysis © 1Lattice | 21 Vertical SaaS Companies from India There are several vertical SaaS companies built from India catering to the world across a plethora of use cases Select Vertical SaaS companies L ogistics Travel & Hospitality C onsumer & Retail Healthcare Manufacturing Food & Agriculture Real estate & Construction Media & Entertainment Note(s): Companies founded in India Source(s): Tracxn , Secondary research, 1Lattice / Sorin analysis © 1Lattice | 22 AI enabled SaaS Companies from India Emergence of Indian based AI SaaS companies; Original SaaS pioneers are also integrating AI with existing products Select AI enabled SaaS companies Original SaaS Pioneers Original SaaS Pioneer AI enabled vertical SaaS companies integrating AI AI enabled horizontal SaaS companies Source(s): Tracxn , Secondary research, 1Lattice / Sorin analysis © 1Lattice | 23 Indian SaaS Investment Overview SaaS investments in India have increased multifold; Delhi NCR and rest of India (ROI) emerging as new SaaS hubs Investments in Indian SaaS companies have seen a significant Bengaluru continues to be India’s SaaS capital; growth in the recent years Share of Delhi NCR and ROI cities increased Investment in Indian SaaS Companies Hub - wise investments in Indian SaaS (CY10 - 23, US$ B) (CY10 vs CY23, %) 6.0 US$ B US$ B 0.1 1.4 4.8 9% 24% 13% 3.1 3% 12% 7% 10% 1.7 13% 1.4 1.4 0.9 13% 8% 0.8 0.7 0.6 0.3 0.2 0.2 0.1 45% CY10 CY11 CY12 CY13 CY14 CY15 CY16 CY17 CY18 CY19 CY20 CY21 CY22 CY23 43% Key observations related to investments in Indian SaaS companies CY10 CY23 36% 70% Of total deals Investments in horizontal Bengaluru Delhi NCR Mumbai Chennai Pune ROI constituted of SaaS in SaaS in CY22 CY2 3H1 Source(s): Tracxn, 1Lattice deal database, Secondary research, 1Lattice / Sorin analysis © 1Lattice | 24 Indian SaaS Value Proposition Talented workforce, better pricing, and strong product offerings give Indian built SaaS products a unique value proposition over global peers Talented Strong product Customer - centric Price advantage Workforce offerings Approach • Offer suite of integrated • Competitive pricing due to products • Prioritize customer lower labour cost which • S trong digitally skilled – Creates cross selling results in low cost for satisfaction and support talen t pool ( ~3M ) – Development opportunities – Maximizes revenue – Infrastructure • Integrate strong service • Specifically trained on from existing customers layers , focussing on: – Maintenance skills like: – After - sales service – Remote customer • Prioritize mobile - first • Provide cost effective – Regular updates management solutions to SMBs approach due to high – Strong feedback – Inside sales and mobile penetration – Offer flexible pricing mechanism customer support – Cater to needs of on - tiers and freemium – Multilingual support the - go users models Source(s): Expert discussions, Secondary research, 1Lattice / Sorin analysis © 1Lattice | 25 Indian SaaS Trends Key enablers for Indian SaaS market growth include adoption by SMBs, New cloud/AI solutions, E - Commerce enablers and Vertical SaaS Enablers for SaaS adoption in India Trends Description Key observations • Enables access to digital tools via subscriptions • Allocation of over 10% of revenue to technology Adoption by SMBs • Aids shift from capital expenses to focused by 35% of SMBs operational models • New software products support finance & New Cloud Infrastructure • India to triple P2M transactions, aiming for a pharma industries $1.2T digital payments market by 2026 in Finance & Pharma • Provision of enhanced services at lower costs • India ranks second globally in AI integration • Commitment to tech innovation & growth • 46% of Indian developers incorporate AI into Rapid AI Adoption through widespread AI adoption their tools • E - commerce surged, hitting almost US$ 100B • Provides smooth online operations for SMBs GMV in the last decade across diverse online Enabling E - Commerce • Ensures customer satisfaction across cities marketplaces • Optimizes customer acquisition cost - effectively • Y - o - Y increase of 15% in VC funding raised by Rise in Vertical SaaS vertical SaaS companies in 2023 • Streamlined customization - free software Source(s): Expert discussions, Secondary research, 1Lattice / Sorin analysis © 1Lattice | 26 Role of India SaaS Stakeholders Key stakeholders like founders, policymakers and investors are coming together to enable growth of SaaS in India Founders Policymakers Investors ● Innovative market approach: ● Expand test bed facilities ● Mentorship & Guidance: ‒ Focus on verticalization and ‒ Increase facilities in tech parks – Share strategic business advices niche targeting for software experimentation and best practices ‒ Freemium models and product - ‒ Support in prototyping products – Connect with relevant industry led growth strategies to expand in diverse scenarios players and other key user base stakeholders ● Create incentives ● Focus on diversification: ● Market Validation and ‒ Encourage software companies networking : ‒ Integrate services into product to invest in R&D suite, providing full - stack – Crowdsource product testing for ‒ Foster creativity to address solution real time iterations industry challenges – Gather insights from potential users to refine products ● Training and skill ● Prioritize customer success: development: ‒ Focus on personalized ● Exit opportunities : ‒ Programs and workshops aimed experiences and customization at skill enhancement ‒ M&A, or public offerings provide ‒ Proactive customer support pathways for successful exits ‒ Offer resources to enhance through timely assistance technical abilities ‒ Incentivize entrepreneurship and attract further investment Source(s): Expert discussions, Secondary research, 1Lattice / Sorin analysis © 1Lattice | 28 Predictions for India SaaS for the world India built SaaS poised for growth in global markets; evolving revenue models and best in class talent will become core differentiators Evolving SaaS SaaS for global AI first SaaS Greater SMB Revenue Models regions companies SaaS adoption • AI first SaaS companies will • Rise in talent pool of India be positioned to deliver • Emergence of diverse and • Substantial SMB market, for emerging technologies – Enhanced customized ingenious monetization forming ~90% of firms in the – To be driven by experience methods for revenue world, who will be potential initiatives like Skill – Higher operational generation target audience in future India Digital efficiency • Launch of additional • E mployment of strategies • Increasing focus on • To prioritize development products & services that like : product localization to of LLMs for AI SaaS models : enable revenue generation – Innovating existing – Cater specific regions – To enhance user like: products for SMBs (APAC & MENA) engagement – Add - ons & plugins – Customized pricing – Personalize UX – To extract insights – Specialized tools to structures – Smoother global user from unstructured enhance functionality onboarding texts • Prioritizing mobile - first • Provision of freemium and SaaS apps for SMBs which • Deployment of cost - • Enhancement in India’s PLG models to will working well on: effective Indian SaaS own AI capabilities – Attract users globally – Lower inbuilt memory solutions – Through initiatives like – Promote organically – Slower processers – Reason being low National AI Strategy & – Foster trust – Lower internet speed labour cost AI Mission Source(s): Expert discussions, Secondary research, 1Lattice / Sorin analysis © 1Lattice | 29 Success Stories of SaaS in India Majorly focused on Europe and US, Whatfix prioritizes personalized customer experiences and user - centric innovation Whatfix offers a digital adoption platform that provides personalized onboarding, interactive guidance, and on - demand support • Founded as SearchEnabler Key figures Key offerings • Renamed as Whatfix 2014 • First office in Bengaluru 6 offices globally 650+ corporates • First customer is Flipkart (in DAP (Digital Adoption India) and University Platform) • Seed: US$ 1M D’Angers (Internationally) • First global event , 50+ partners 30+ countries served 2015 showcasing DAP offerings Products Analytics 900+ employees 71 Fortune 500 customers • Series A: US$ 3.7M • 100+ customers 2018 st • 1 international office at San Success determinants Jose, California • Series B: US$ 12.5M • Acquired Airim Sales strategies R&D investment User - centric innovation 2019 st offering 1 • Add 4 - 5 new Fortune 500 logos • In - context information and • Funding deployed towards R&D autonomous DAP every quarter guidance increased individual and product innovation capability and platform • Contextualized product basis • Focus on curating personalized • Series C : US$ 32 M productivity 2020 end buyer persona; helped drive customer experiences • Category leadership with DAP product market fit • Signifying customer expectations Playbook • Succeeded with focused specific with quantifiable ROI of product use case solutions • Series D: US$ 90M • 500+ employees 2021 Annual Revenue globally Focus regions (US$ M, FY20 - 23) • Gold Winner in Europe & US CX CAGR Award ~60% 34 2022 • 50+ global Fortune 500 Europe 21 customers 13 • Multi - product offerings 8 with launch of Product Analytics United States of FY20 FY21 FY22 FY23 • Representative in 2023 America Gartner Market Guide Note(s): US 1 = INR 83; Financial data from Tracxn for DAPs Source(s): Company website, Secondary research, 1Lattice / Sorin analysis © 1Lattice | 31 Success Stories of SaaS in India With pioneering content, data - driven decisions and diverse revenue model, Zaggle is set to expand its business in India with public listing in 2023 Zaggle stands out with its innovative AI - driven expense management solution to optimize corporate expenditures Key figures Key offerings • Founded to bridge the gap in 2011 employee welfare in India 6 offices across India 2,411+ corporates • Global Prepaid Zaggle Payroll Card Exchange Award for 2 Network Partners, 3 Banking 2013 the Start - Up of the 2.3M+ users (employees) Partners Year CEMS (Customer • Zaggle app launched, Engagement 2015 250+ employees 50M prepaid cards issued focusing on Loyalty & Management System) Cashback • Partnered with Indian Success determinants cricketers , who 2017 became Brand Customer Base Diverse revenue model Data - driven innovation Ambassadors • Enhanced engagement with • Business model with diverse • Combination of payment • Zaggle corporate platform for 2018 Corporates, SMBs, start - ups & sources of revenue – instruments, mobile Employee Benefits and Expense merchants Employee Expense application and API • Best B2B Enterprise Management unveiled Management and Benefits, integrations Product • Increased user penetration rewards and recognition • Zaggle PROPEL & 2019 and cross - selling within • Ability to leverage strong platform and accounts Expense management existing customer base network of merchants, card with IndusInd payable platform partners and business • Best FinTech Corp. Innovation bank launched 2020 Prog. Award at The Economic Annual Revenue Times BFSI Innovation Tribe Focus regions (US$ M, FY20 - 23) 67 • Zoyer for B2B CAGR 2020 payments for SMBs ~101% 45 29 and enterprises 8 India • Public listing in September 2023 FY20 FY21 FY22 FY23 Note(s): US 1 = INR 83; Financial data from Tracxn Source(s): Company website, Company annual report, Secondary research, 1Lattice / Sorin analysis © 1Lattice | 32 Success Stories of SaaS in India DarwinBox's rapid ascent to Unicorn status with major focus on APAC region is attributed to its mobile - first strategy & ongoing platform evolution Darwinbox is a disruptive mobile - first, cloud - based HCM solution built for enterprises to automate day - to - day HR processes Key figures Key offerings • Founded in Hyderabad 2015 12 global offices 850+ corporates Human Resources Management Systems • Seed : US$ 480K • Focused on start - ups 17 category - based partners 116+ countries served 2016 than large enterprises HCM Solutions • Series A: US$ 4M 1000+ employees 2.2M users (employees) 2017 • Contracts with 40 major enterprise clients • Voicebot for employee Success determinants engagement 2018 • Partnered with UpsideLMS Focus on innovation Mobile first approach Comprehensive Solution for HR & Tech Solutions • Series B: US$ 15M • Continuous innovation across • Focused on Mobile based app • Provides All - in - one HR solutions • Expand to Malaysia, 2019 security operations and DevOps Indonesia, Thailand & • Global access, real - time data & • Meets customer satisfaction enables globally robust Southeast Asian market advanced tools for remote with diverse features platform work • 360 Degree Feedback, seamless • Launched lighter Android • Ease of use adapted to cultural 2020 • Mobile - HRMS, AI in HR, Voice - integration, & high performance mobile app connotations and configurable bot, Facial recognition, etc. workflows • Series C: US$ 15M Annual Revenue • Youngest & first Asian player 2021 Focus regions (US$ M, FY20 - 23) featured on Gartner's Magic • Series D: US$ 72M, became Quadrant CAGR Unicorn 27 ~110% • Entered US market Asia Pacific 2022 14 • Global Headquarters in 6 Hyderabad 3 • Partnered with PwC & Microsoft Middle East and rd • Recognized for 3 time on 2023 FY20 FY21 FY22 FY23 North Africa Gartner Magic Quadrant Note(s): US 1 = INR 83; Financial data from Tracxn Source(s): Company website, Secondary research, 1Lattice / Sorin analysis © 1Lattice | 33 Success Stories of SaaS in India Europe and US focused Zoho Corporation saw a net profit of US$ 342M driven by heightened revenue from its diversified product portfolio With 55+ products, Zoho provides a suite of cloud - based applications for business productivity and collaboration Key offerings Key figures • AdventNet Inc. emerged in 1996 New Jersey, USA Zoho CRM – CRM ZOHO People – HRM 26 offices globally 700K+ corporates • Expanded into Japan 2001 Zoho Projects - Zoho Inventory - project management Inventory 2,000+ partners 180+ countries served 2005 • Zoho CRM released software management system • Zoho Creator 450 Fortune 500 Zoho Sites - Website Zoho Books – 2006 15K+ employees launched companies builder software Accounting software • Launched collaboration space 2007 Success determinants • Added invoicing & 2008 Diversified Product Portfolio Freemium Model Competitive Pricing mailing solutions • W ide range of products • Allows free access to basic • Offers affordable solutions for 2009 • Renamed to Zoho corporation spanning CRM, collaboration features of its products small and medium - sized tools, email marketing, businesses (SMBs) • Encourages businesses to try 2010 • Zoho desk was born finance, HR, etc. out its software without • Prioritizes innovation, • Allows to cater to various financial commitment introducing regular updates • Zoho became one of the largest 2014 businesses and industries to ace the competition subscription business • Launched Zoho One , a 2017 suite of 40 Annual Profit Focus regions applications (US$ M, FY20 - 23) • Reached more than 50M 2020 customers CAGR 342 331 ~52% • Expanded Zoho One Europe 2021 231 to 50 applications 96 • Rolled out the Agency Model for 2022 • Introduced 48 new marketing agencies to manage extensions multiple clients United States of FY20 FY21 FY22 FY23 • Visionary in Gartner 2023 America Magic Quadrant Note(s): US 1 = INR 83; Financial data from Tracxn Source(s): Company website, Secondary research, 1Lattice / Sorin analysis © 1Lattice | 34
