"The largest player, Zoho Corp, has over $500 million in annual recurring revenue and Freshworks has around $100 million. With other firms included, the revenue of the SaaS industry in Chennai would be over $1 billion," said Suresh Sambandam, founder and CEO of Orange Scape and part of SaaSX, a movement of SaaS-based companies.
Chennai-based SaaS firms have so far raised over $500 million, even as the largest in the flock, Zoho Corp, is a bootstrapped company. Sambandam said that even though his own firm, Kissflow, is funded, it has been working close to a bootstrapped fashion.
"One good thing about Chennai is we make more revenue than funding," he added.
Freshworks, alone, has raised close to $250 million in several rounds so far. Recently, Freshworks announced its expansion plan to set up its second office in the country in Bengaluru.
During the first GIM held in 2015, Zoho had committed an investment of around Rs 30 billion to set up its facilities in the state.
The state government has said that it is expecting around Rs 150 billion in investment proposals from the IT and ITeS sectors during the upcoming GIM edition, as compared to Rs 109 billion during the previous edition.