In 2024, the Indian SaaS startup scene is booming, with significant investments pouring in from top venture capital firms such as LetsVenture, Inflection Point Ventures (IPV), Artha Venture Fund, Blume Ventures, and Mumbai Angels.
Recent funding rounds illustrate a surge in capital flowing into the sector, with notable Series A investments like LetsVenture’s $15 million injection into a Bangalore-based SaaS startup and Inflection Point Ventures’ $20 million backing of a Mumbai SaaS company.
What is a SaaS startup?
A SaaS startup refers to a company that provides software as a service (SaaS) to its customers. In this model, instead of purchasing and installing software on their own servers or computers, customers access the software through the internet on a subscription basis.
SaaS startups develop, host, and maintain their software applications centrally, allowing users to access them remotely via the internet. This eliminates the need for customers to manage complex software infrastructure, such as servers, databases, and maintenance, as all of these responsibilities are handled by the SaaS provider.
Common examples of SaaS applications include customer relationship management (CRM) software like Salesforce, productivity suites like Google Workspace (formerly G Suite), collaboration tools like Slack, and project management platforms like Asana.
SaaS startups often offer flexible pricing plans based on subscription tiers, usage levels, or specific features, allowing customers to scale their usage according to their needs.
Top 5 VC funds that invest in SaaS Startups based in India
Lets Venture
LetsVenture has been a key player in shaping India’s startup ecosystem, offering not only financial support but also valuable mentorship and networking opportunities.
With a keen eye for disruptive innovations, LetsVenture has contributed to the success of numerous SaaS startups, making it a sought-after partner for aspiring entrepreneurs.
Advisors, Investors, Supporters include Ratan Tata, Mohandas Pai, Sharad Sharma, Subrata Mitra & many more
- Portfolio Value- $11+Bn
- Investors on platform- 20k+
- Startups Registered- 36k+
Inflection Point Ventures (IPV)
Founded in 2018, Inflection Point Ventures (IPV) is a 7000+ strong members angel investing firm which supports new-age entrepreneurs, providing them monetary & experiential capital by connecting them with a diverse group of investors.
A new investor can start with a small investment and still make a meaningful value proposition for the startup with combined funding from various members.
- Deals invested: 218
- Investors on Platform: 12,906
- Capital raised for start-ups: INR 6,799,027,804/-
Artha Venture Fund
Established in 2013, this venture capital firm focuses on backing dedicated entrepreneurs who are creating Software as a Service (SaaS) solutions tailored to tackle the unique challenges faced by Indian consumers. With meticulously crafted strategies, they empower businesses to provide significant value to their stakeholders.
- Investments – 29
- Fund size – 675 crores
- MOIC – 3.68x
- IRR – 82%
Blume Ventures
Specializing in pre-Series A and early-stage funding, this VC firm is dedicated to supporting SaaS and tech-enabled startups. Since its inception in 2010, the firm has been unwavering in its commitment to helping entrepreneurs realize their visions. With a remarkable track record, they have enabled over 150+ startups to turn their dreams into reality.
- Funding: $280+ M
- Investment Stages: Seed, Series A, Series B
- Portfolio Exits: 24
Mumbai Angels
The Mumbai Angels team annually invests in a diverse pool of SaaS startups, striving to offer entrepreneurs unparalleled resources and networking opportunities essential for scaling their ventures. With a vast network of over 700 investors, this platform presents entrepreneurs with a golden opportunity to secure the necessary funding for their business endeavors.
- Invest from a pool of 500+ new companies every year.
- In 2021, they invested in 56 companies
- 18 of their portfolio companies saw successful exits
Conclusion:
In conclusion, the future looks bright for SaaS startups in India, poised for significant growth and innovation.
Platforms like Excluto.com are pioneering the transformation of Venture Capital into a distinct asset class. Exclusive to accredited investors (LPs) and venture capital funds (VCs), Excluto facilitates seamless connections, propelling the growth of SaaS startups and driving forward India’s tech industry.
Note: It’s important to note that Excluto does not operate as a wealth management or financial advisory service, maintaining its focus on fostering transparent and mutually beneficial relationships within the venture capital community.
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