In 2016, during my time in the U.S., I witnessed firsthand how the venture capital ecosystem was deeply invested in cloud software. Business school introduced me to the transformative power of cloud architecture, which was fundamentally reshaping software development. Unlike the traditional methods I learned during my IIT days—writing scripts, programs, and executable files—cloud computing allowed developers to provision systems within an hour, making software creation more accessible and scalable.
Returning to India in 2018, I saw early signs of the software boom that is now in full swing. The mobile revolution had already taken off, bridging the digital divide. Today, with over 800 million smartphone users across India, software has become more accessible than ever. Platforms like Salesforce, Zoho, Darwinbox, and Leena.ai are now at users’ fingertips, making enterprise software adoption seamless. Developers recognized the potential of this mobile-first ecosystem, and software usage expanded beyond Tier 1 cities, where intuitive user experiences drove mass adoption. The COVID-19 pandemic further accelerated this trend, solidifying software as an integral part of businesses and daily life.
One particularly compelling data point from last year highlights that India is the largest contributor to open-source AI projects on GitHub. If software is “eating the world” and AI is “eating software,” then India, with its vast pool of software and AI developers, is positioned as a global leader in the space. Ignoring India’s role in the future of software is no longer an option.
The Rise of Cloud AI in India: 2024 Report
Our latest report on the SaaS sector, The Rise of Cloud AI in India 2024, reinforces our belief that India is on track to become a $50 billion SaaS market by 2030—a forecast we made a few years ago. However, with AI acting as a powerful accelerant, we see potential for an even larger market. AI is not only increasing the value software delivers but also expanding the scope of what software can achieve.
The past 12 to 18 months have also signaled a resurgence in venture funding for software startups, driven largely by AI innovation. More companies are now reaching the coveted $100 million Annual Recurring Revenue (ARR) milestone, a key indicator of product-market fit and scalability. We refer to such companies as “Centaurs,” distinguishing them from unicorns, whose valuations are dependent on fluctuating investor sentiment. Unlike market-driven valuations, Centaur status is purely a function of customer adoption and sustained revenue growth, making it a more reliable metric for long-term success.
In the past year alone, India has added three new Centaurs—Amagi, Innovacer, and Shiprocket—bringing the total to 14 publicly known companies, with a few more likely operating under the radar. With AI continuing to reshape the software landscape, we anticipate even more Indian startups reaching this milestone, further cementing the country’s position as a major force in global enterprise technology.
