India-based SaaS companies<\/a> look to ride out the macroeconomic headwinds with judicious spending and sharper focus on core businesses as a recession in the US hits one of the country’s newest technology ecosystems in the form of slower business growth, entrepreneurs said. 印度的SaaS的公司看起来安然度过宏观经济的不利因素与明智的更加专注核心业务的支出和经济衰退在美国打击一个国家的最新技术生态系统的业务增长放缓,企业家说。
Most India-based SaaS<\/a> products cater to the US market<\/a>, though some have managed to diversify risk with expansions into Europe, Lat-Am, and New Zealand-Australia markets. Nevertheless, the US carries significant weight in the geographic mix of most SaaS firms, making lower tech spending a key drag on topline growth.
“Definitely, there is a recession in the US and that’s impacting business growth. But it’s also true that B2B SaaS has shown some resilience, as against some venture capital-backed B2C ventures with higher cash burn per month, which have already had to make sharp cuts, including layoffs,” said Siva Rajamani, founder of VC-backed sales commission platform Everstage.
Indian SaaS businesses<\/a> have perfected the US-focused delivery model, with strong indigenous product development and engineering workforces, and a mix of field and desk marketing teams to compete with global majors such as Salesforce. Large Indian SaaS<\/a> companies such as Zoho and Freshworks—which is set to close current year with revenue around $495 million—compete with behemoths such as Salesforce and even Microsoft in certain segments, marked as challengers to the current market leaders due to their ability to scale up reliably, and attractive pricing. Nevertheless, the current slowdown is growing to be the first significant test to top line growth for a relatively new space in which 150% year-on-year growth is par for the course.
Automotive tech platform Tekion believes the recessionary pain could last 12-24 months from now, CEO Jay Vijayan told ET in a recent interview. Tekion’s product, including its automotive retail cloud product for dealers, is sold as a SaaS product. Companies may have to tighten spending, including the need to trim marketing budgets. Recently, recurring billing management company Chargebee—valued at $3.5 billion in a February fund-raise of $250 million—has let go of 10% workforce as it corrects spending to suit market conditions and acknowledged need to accelerate ‘path to profitability,’ a new terminology dominating boardroom discussions across VC-backed technology firms.
An entrepreneur, refusing to be identified, said workforce trimming becomes inevitable in a scenario where venture capital-backed firms targeting an IPO need to conserve cash and extend runway until public markets regain lost ground. “There is a significant mismatch between earlier valuations and how the public markets value tech companies in the US now. In view of this differential, companies must hunker down and prepare for a lean period,” the entrepreneur said.
In the US, the tech-heavy Nasdaq composite has lost over 30% year-to-date, a deeper fall compared to other indices with wider industrial constituents such as the S&P 500 (-17.13% year-to-date), and the Dow Jones Industrial Average (-7.26%).
Mumbai-based Netcore Cloud put off its IPO decision to March next year and is focussing on its core market amid a tendency among software buyers to review spends, CEO Rajesh Jain had told ET. Another change in the SaaS model itself is companies letting go of costly-to-serve customers. “I have been speaking to some entrepreneurs who have let go of customers at the lower end of the scale. Earlier they would just focus on topline growth but now, if some of the smaller companies are getting too costly to serve, there is a tendency to let them go.”
Nevertheless, the silver lining for India-based SaaS<\/a> businesses has always been its ability to pivot to newer product lines, given the ready availability of technology talent across hubs such as Chennai and Bengaluru. This gives SaaS firms, particularly startups in the $15-25 million revenue range, to stage pivots and explore newer markets and product lines to shore up revenue in existing businesses, Kissflow founder Suresh Sambandam<\/a> said.
Chennai- and San Mateo-based SaaS company Freshworks’ CEO Girish Mathrubootham said the company’s Q3 revenue grew 37% despite a confluence of factors from higher inflation rates to the Russia-Ukraine war wreaking havoc on the macroeconomy. Zoho’s Sridhar Vembu had recently said that the current slowdown could be similar in magnitude to the ‘dotcom burst’, with recovery taking as long as two years.
Analysts say the distinction in measuring impact on SaaS firms lies in their markets of focus. Sharad Sharma, evangelist of product software ecosystem, who co-founded iSPIRT Foundation, a technology think tank, said: \"I don't think the SaaS companies<\/a> focused on the US markets can escape the effects of the demand contraction in the US. Nevertheless, the impact on India-focussed SaaS firms could be lesser, given that the macroeconomic headwinds are expected to be less severe here\".
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大多数印度的SaaS产品迎合美国市场,虽然有些人设法分散风险扩展到欧洲,Lat-Am,新的Zealand-Australia市场。然而,美国具有很大的影响力在大多数SaaS公司的地理结构,使低科技支出拖累背线增长的关键。
“绝对,在美国经济衰退影响的业务增长。但它也是B2B SaaS显现出一些韧性,较高的风险投资支持B2C企业对一些每月现金消耗,已经不得不大幅削减,包括裁员,“湿婆Rajamani说,风投支持的销售佣金的创始人Everstage平台。
汽车技术平台Tekion认为衰退的疼痛可能会持续12 - 24个月,首席执行官杰Vijayan告诉ET在最近的一次采访中说。Tekion的产品,包括汽车零售云产品经销商,销售作为一个SaaS产品。公司可能不得不收紧开支,包括削减营销预算的需要。最近,重复计费管理公司Chargebee-valued在2月筹集资金250美元35亿美元million-has放开10%的劳动力,因为它纠正了支出,以适应市场条件和承认需要加速的盈利之路,一个新的术语主要在风投支持的科技公司董事会讨论。
一个企业家,拒绝透露姓名,说劳动力削减成为不可避免的风险投资支持的公司情况针对IPO需要节省开支并延长跑道直到公共市场收复失地。”之间存在着显著的不匹配以及公开市场价值估值科技公司早些时候在美国现在。鉴于这个微分,企业必须未雨绸缪,精益,”企业家说。
在美国,Nasdaq指数收今年迄今已经失去了超过30%,更深层次的下降比其他指标与更广泛的工业成分如标准普尔500指数今年迄今(-17.13%),和道琼斯工业股票平均价格指数(-7.26%)。
孟买Netcore云推迟IPO决定明年3月,关注其核心市场在趋势中软件买家评论花,CEO贾恩说告诉等。另一个SaaS模型本身的变化是公司放开costly-to-serve客户。“我一直说一些企业家的客户在低端的规模。早些时候他们会只关注头条新闻的增长,但现在,如果一些规模较小的公司变得过于昂贵的服务,有一种倾向,让他们走。”
然而,的一线希望印度的SaaS企业一直是其主的能力更新产品线,唾手可得的技术人才中心如钦奈和班加罗尔。这给SaaS公司,尤其是初创公司在15 - 25几百万美元的收入范围,到舞台轴心和探索新的市场和产品来支撑现有业务收入,Kissflow创始人苏雷什Sambandam说。
钦奈和圣Mateo-based SaaS公司Freshworks CEO Girish Mathrubootham表示,该公司第三季度收入增长37%,尽管从更高的通货膨胀率的主要原因Russia-Ukraine战争给宏观经济造成严重破坏。Zoho的bloom Vembu最近表示,当前的经济放缓可能会相似大小的“互联网爆发”,随着经济复苏,只要两年。
分析师表示,在测量影响SaaS公司的区别在于他们的市场的焦点。传道者拉德·夏尔马产品的软件生态系统,共同iSPIRT基金会技术智囊团,说:“我不认为SaaS的公司集中在美国市场能逃脱美国需求萎缩的影响。不过,India-focussed SaaS公司受到的影响可能较小,考虑到宏观经济的不利因素预计将在这里那么严重”。
India-based SaaS companies<\/a> look to ride out the macroeconomic headwinds with judicious spending and sharper focus on core businesses as a recession in the US hits one of the country’s newest technology ecosystems in the form of slower business growth, entrepreneurs said.
Most India-based SaaS<\/a> products cater to the US market<\/a>, though some have managed to diversify risk with expansions into Europe, Lat-Am, and New Zealand-Australia markets. Nevertheless, the US carries significant weight in the geographic mix of most SaaS firms, making lower tech spending a key drag on topline growth.
“Definitely, there is a recession in the US and that’s impacting business growth. But it’s also true that B2B SaaS has shown some resilience, as against some venture capital-backed B2C ventures with higher cash burn per month, which have already had to make sharp cuts, including layoffs,” said Siva Rajamani, founder of VC-backed sales commission platform Everstage.
Indian SaaS businesses<\/a> have perfected the US-focused delivery model, with strong indigenous product development and engineering workforces, and a mix of field and desk marketing teams to compete with global majors such as Salesforce. Large Indian SaaS<\/a> companies such as Zoho and Freshworks—which is set to close current year with revenue around $495 million—compete with behemoths such as Salesforce and even Microsoft in certain segments, marked as challengers to the current market leaders due to their ability to scale up reliably, and attractive pricing. Nevertheless, the current slowdown is growing to be the first significant test to top line growth for a relatively new space in which 150% year-on-year growth is par for the course.
Automotive tech platform Tekion believes the recessionary pain could last 12-24 months from now, CEO Jay Vijayan told ET in a recent interview. Tekion’s product, including its automotive retail cloud product for dealers, is sold as a SaaS product. Companies may have to tighten spending, including the need to trim marketing budgets. Recently, recurring billing management company Chargebee—valued at $3.5 billion in a February fund-raise of $250 million—has let go of 10% workforce as it corrects spending to suit market conditions and acknowledged need to accelerate ‘path to profitability,’ a new terminology dominating boardroom discussions across VC-backed technology firms.
An entrepreneur, refusing to be identified, said workforce trimming becomes inevitable in a scenario where venture capital-backed firms targeting an IPO need to conserve cash and extend runway until public markets regain lost ground. “There is a significant mismatch between earlier valuations and how the public markets value tech companies in the US now. In view of this differential, companies must hunker down and prepare for a lean period,” the entrepreneur said.
In the US, the tech-heavy Nasdaq composite has lost over 30% year-to-date, a deeper fall compared to other indices with wider industrial constituents such as the S&P 500 (-17.13% year-to-date), and the Dow Jones Industrial Average (-7.26%).
Mumbai-based Netcore Cloud put off its IPO decision to March next year and is focussing on its core market amid a tendency among software buyers to review spends, CEO Rajesh Jain had told ET. Another change in the SaaS model itself is companies letting go of costly-to-serve customers. “I have been speaking to some entrepreneurs who have let go of customers at the lower end of the scale. Earlier they would just focus on topline growth but now, if some of the smaller companies are getting too costly to serve, there is a tendency to let them go.”
Nevertheless, the silver lining for India-based SaaS<\/a> businesses has always been its ability to pivot to newer product lines, given the ready availability of technology talent across hubs such as Chennai and Bengaluru. This gives SaaS firms, particularly startups in the $15-25 million revenue range, to stage pivots and explore newer markets and product lines to shore up revenue in existing businesses, Kissflow founder Suresh Sambandam<\/a> said.
Chennai- and San Mateo-based SaaS company Freshworks’ CEO Girish Mathrubootham said the company’s Q3 revenue grew 37% despite a confluence of factors from higher inflation rates to the Russia-Ukraine war wreaking havoc on the macroeconomy. Zoho’s Sridhar Vembu had recently said that the current slowdown could be similar in magnitude to the ‘dotcom burst’, with recovery taking as long as two years.
Analysts say the distinction in measuring impact on SaaS firms lies in their markets of focus. Sharad Sharma, evangelist of product software ecosystem, who co-founded iSPIRT Foundation, a technology think tank, said: \"I don't think the SaaS companies<\/a> focused on the US markets can escape the effects of the demand contraction in the US. Nevertheless, the impact on India-focussed SaaS firms could be lesser, given that the macroeconomic headwinds are expected to be less severe here\".
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