Indian software product companies valued at more than $10 billion
Posted on: 05/Sep/2015 11:55:36 AM
According to a value of index compilation, India’s top 30 enterprise software product companies are valued at almost $10.25 billion. The report is based on an index called iSPIxB2B. This index comprises of top 30 software product companies in the country, along with their valuations. The report also says that the number of employees have grown by 18% to over 21,000 employees.
According to the experts, ‘We see a steady growth in this space and we expect it to continue to grow nicely. The data tells us that the ecosystem is accelerating. There has been a notable increase in the enterprise value per employee, showcasing shift from services heavy to product-heavy offerings... The growth in the number of enterprise software companies is due to three key reasons—the growing domestic market, easier access to global customers via the internet and a growing breed of entrepreneurs who have deeper understanding of software products and industries... There is a new class of entrepreneurs coming in with a very close finger on the pulse of the needs today and creating solutions for that.’
Around 80% of the companies are focused on the global market. This includes companies such as Knowlarity which is a cloud telephony company, Freshdesk which is a customer support software maker and InMobi which is an ad tech company. 67% of the companies are domiciled in India. However, these companies have started to get incorporated in the US and Singapore of late. Most of the companies have not had institutional financing in their early stages. Around 43% of the companies are bootstrapped and most got growth financing instead of venture capital financing at the initial stages.
Most of the companies are from Delhi, followed by companies from Bengaluru, Chennai, Pune and Mumbai, and then other cities. Around 60% of the companies are focused on financial services, retail, media and travel.
