For over a decade, India's cloud-based software giants followed a well-trodden path: build their products in India but seek public listings on overseas exchanges like NASDAQ. That era is now decisively ending. A significant wave of Indian Software-as-a-Service (SaaS) companies is preparing to list on domestic stock exchanges, marking a pivotal shift in the country's tech landscape.
The Pipeline: Who's Ready to Go Public?
Investment bankers and venture capitalists predict that at least seven to eight SaaS startups are gearing up for local initial public offerings (IPOs) within the next 12 to 18 months. This move breaks the pattern where domestic tech IPOs were dominated by consumer-facing internet firms.
So far, RateGain and Capillary Technologies have been rare examples of large SaaS listings in India. Now, they are set to be joined by a robust pipeline. Companies actively preparing or considering public listings include:
- Amagi: The cloud-based media solutions provider has already received Sebi approval for an IPO involving a fresh issue of ₹1,020 crore.
- LeadSquared: The CRM software firm has targeted an IPO in a 12-18 month window.
- BusinessNext & Zenoti: Both have crossed the $100 million revenue mark, according to investor Avataar Ventures.
- Other contenders in the lineup include Icertis, Mindtickle, Juspay, and Whatfix.
Pankaj Naik of Avendus Capital notes, "The number of IPO-ready SaaS companies today is materially higher than in 2021–22, when only a handful qualified." Many of these firms crossed the $80-100 million revenue threshold in the last fiscal year and are now seeking to provide exits to early investors.
Why the Rush Home? Valuation and Market Understanding
The exodus back to Indian shores is driven by a compelling valuation argument. Founders and bankers believe the domestic market now offers better understanding and potentially premium valuations for their business models.
Nishant Singh, CEO of BusinessNext, explains the shift: "Mature SaaS companies... are moving back to India because they realize they can command premium valuations here. The Indian market understands their story better than a crowded NASDAQ."
This is supported by a structural change. Companies like Clevertap and Browserstack have initiated processes to flip their domicile back to India, joining larger consumer tech names like Flipkart and PhonePe. The growing base of SaaS firms with $50–100 million in annual recurring revenue makes domestic listings both feasible and attractive.
Naik adds that Indian public market investors value tech companies on fundamentals like forward EBITDA, unlike the US focus on revenue multiples. "Valuations have rationalised, making IPOs more realistic rather than hype-driven as in the 2021 consumer wave," he states.
The AI Disruption: A Looming Challenge for SaaS
This impending IPO wave, however, must navigate a significant industry upheaval: the disruptive rise of artificial intelligence. Many of these SaaS firms were founded between FY14-17 and scaled during the pandemic. Now, they face a dual challenge.
First, global SaaS valuations underwent a sharp correction after the US Fed's 2022 rate hikes, with indices falling 50-60% from 2021 peaks. Second, and more critically, AI-native startups are beginning to redefine the market.
Sumer Juneja of SoftBank observes, "Over the past two to two-and-a-half years, AI has started redefining what a SaaS product is... There is no longer a single technology or IT budget—those budgets are getting fragmented."
This urgency is partly why companies are lining up listings now—to secure capital and solidify their market position before AI-native competitors gain full momentum. Mohan Kumar of Avataar Ventures frames this as a limited window: "After some 10 or so companies, I honestly don't see many more (pure-play SaaS startups)... After this, we'll see a new wave—companies with SaaS characteristics, workflow automation, and AI combined."
Despite the AI threat, the current IPO calculus remains grounded in profitability. Kumar notes, "As of now, Indian IPO markets don't value you for being SaaS or AI. They value profitability." Companies like Whatfix emphasize that current IPO discussions are more focused on "revenue quality, operating leverage and capital efficiency, rather than just growth numbers."
The coming 18 months will test this hypothesis, determining whether Indian public markets can successfully absorb this first major wave of homegrown SaaS innovators before the next technological disruption fully takes hold.
