“I have seen five myths about new age tech companies being busted in the last five weeks. I am looking forward to the next five years and expect 20% of the market to belong to tech companies in India by 2025. Other than that, SaaS companies will be the next big thing and account for another trillion dollar ma-cap in future.”
Are the fundamentals for Indian IT intact irrespective of the niggling quarter to quarter worries like attrition?
My mind is in the digital space and not in the IT space. So fundamentally, I am still enthralled with what happened in the last two weeks, which I will call the trillion dollar movement for India. In a few years time, by 2025, the Indian market cap may touch $5 trillion and the next trillion is going to come from the digital companies. So I am really enthralled with what has happened with the Zomato issue and $50 billion IPOs of digital companies are in the pipeline. It has opened up the next trillion dollars of market cap for India. It has also shattered many myths about the Indian digital consumer tech or any of the Indian digital industries that are possible. So I am really thrilled about it.
Remember, 27% of the market cap in the US is from digital companies, not IT or IT services companies. In India it is 0.88% and that too we had to make a lot of effort to estimate that number. In the US, last year 40% plus IPOs were from digital companies. The digital movement, the tech company movement for India has opened and that is what we should talk about.