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Dhruvil Sanghvi, Founder and CEO of LogiNext, believes now is the ideal time for software-as-a-service (SaaS) companies to build from India for the world.

Speaking at TechSparks Mumbai edition, Sanghvi said SaaS is a business that has the potential to generate recurring revenues and high gross margins. It also means that it is easy to achieve profitability.

“There will always be a need for SaaS products. Founders will never have to run behind retaining customers to control churn, so, one can build a brilliant scalable business without distractions,” Sanghvi said.

India will witness “a huge explosion of SaaS startups” that will sell to the world in the next decade, he added.

The country currently has about 3,500 SaaS startups, and the number is expected to double every year,

Green shoots in SaaS

Business-to-business (B2B) software products will be the next big thing, Sanghvi said. He added that any software product or service that will help solve problems across functions like accounting, human resources, marketing, analytics, and operations within organisations offers green shoots in the space.

“Organisations employing more than 100 workers require enterprise software to manage various departments. Building B2B software is an opportunity in SaaS that should not be missed,” Sanghvi said.

New York-based LogiNext is a global technology and automation company that focuses on transportation, home deliveries, omnichannel fulfilment, and the B2B distribution market. The company has raised $50 million across three rounds of private equity investments made by Alibaba-funded companies—Tiger Global Management and Steadview Capital. It has regional offices in Dubai, Mumbai, Delhi, Kuala Lumpur, and Jakarta.