October 20, 2022

Building in Bharat for the World: The alternative financing solutions-led ecosystem to scale your business

Building in Bharat for the World: The alternative financing solutions-led ecosystem to scale your business

“This is the decade of technology for India. So come 2030, India will make for 20-30% of the global SaaS market pie,” said Jitendra Yadav, CEO, Ministry of Electronics and Information technology, Startup Hub at the Recur Club and InfoEdge Ventures panel discussion “How Indian SaaS Startups Should Navigate the Current Macro Environment” held on August 10 in New Delhi.

With that being the reigning sentiment amongst all the founders, VCs, and advisors present at the event that saw over 100 attendees from the Indian startup ecosystem — actionable insights into the best GTM strategy, the importance of focusing on solid economic units, pricing strategies that can help startups break into the US markets were discussed.

At the event, Apurva Chamaria, Head of Partnerships, Startups Google stated,India enjoys great credibility and prestige on technology. 10% of the global developer population is based out of India and it is growing at 40%. Owing to our strong developer community, our ability to develop SaaS products is very high and I foresee a lot of enterprise SaaS companies coming up.”

Even though the times are grim with the current challenges of the global macro environment, it is time to throw out the old calendar and loop in alternative financing solutions that help transform recurring revenue streams into upfront capital to grow your business. Kitty Agarwal, Partner, Infoedge Ventures said, “Owing to the recurring nature of cash flows, high gross margins and capital efficiency, SaaS-based business model becomes way more defensive in the down markets rather than upmarket. These key advantages of the SaaS business model give founders more flexibility to scale up the business and grow.”

BVP’s SaaS index which tracks 50+ key cloud companies was trading at over 20x ARR in 2020. But since last year the index witnessed a 50% decline in LTM. Startups are now looking at alternative financing solutions as well after seeing a 20-30% decline in funding through traditional channels. 

Gaurav Goel, Group President & National Head - Startup/Fintech & New Economy Business, Yes Bank said, “Banking industry is gearing to provide a better ecosystem to the Indian startup ecosystem and that Yes Bank has recently also started investing equity in selective startups”. 

Aiming at discussing the current challenges of the global macro environment, the panel discussed how being contribution margin positive and leveraging alternative financing solutions like those provided by Recur Club can help SaaS companies to navigate the current macroeconomic scenario. Get started here to know how Recur Club is empowering the startups of today to become the industries of tomorrow — capital no bar.