Indian SaaS founders are not ignoring India. They are choosing sequences. If you need fast growth, the US still gives the largest pool of software buyers, bigger contract values, and faster expansion once product fit is clear, a strategy often discussed in Latest News in India coverage.
India’s SaaS sector crossed $15 billion in FY24, with a 24% CAGR since FY19 and more than 36 firms above $100 million ARR. That maturity gives founders confidence to sell globally from day one.
The Real Math Behind The US-First Go-To-Market
The demand side is simple: enterprise tech budgets are still rising. Gartner expects global IT spending to hit $6.15 trillion in 2026, and software spend to reach about $1.43 trillion. US buyers account for a major chunk of that wallet, especially in B2B categories where annual contracts can fund product, support, and AI upgrades quickly.
Then comes execution logic. Freshworks, born in Chennai and listed in the US, told Reuters it holds over $800 million in cash, is actively scouting AI acquisitions, and keeps 80% of its workforce in India. That model explains the playbook: build in India, sell where budgets are deeper, then reinvest back into product and talent. Official update from a major news account: Reuters On X.
Why This Is A Strategy, Not A Trendy Shortcut
Policy friction, including visa uncertainty, is pushing firms to localise US hiring earlier while keeping core engineering in India. At the same time, founders are not abandoning home demand: SaaSBoomi projects India’s domestic software market could reach $100 billion by 2035. So the short answer is timing. US first for scale. India next for durable depth.
FAQs
Do Indian SaaS firms ignore Indian customers?
No, many start US-first for revenue speed, then localize products and pricing for Indian expansion.
Why are US contracts attractive?
US enterprises usually sign larger annual deals, giving startups longer runway and stronger hiring confidence.
Is visa policy a big factor now?
Yes, policy shocks force earlier local hiring plans while India remains the engineering backbone globally.
What does AI change in this strategy?
AI raises product expectations and costs, so founders chase deeper US budgets to iterate faster.
Can India become the primary market later?
Yes, domestic demand is scaling rapidly and could create large software outcomes by 2035 independently.
