The Software as a Service (SaaS) market is growing globally. According to experts, the Brazilian market is still underserved but is also growing at a rapid pace.

What is SaaS?

Software as a Service (SaaS) is a software licensing and delivery model in which software is licensed by subscription and centrally hosted. It is also known as web-based software, on-demand software, and hosted software.

Globally, Gartner predicts that SaaS revenues will grow to $278 billion by 2021, up from $145 billion in 2017. Brazil, as an underserved market with significant opportunities, is expected to play a key role in this growth.

Keiretsu Software Initiative

Keiretsu Software, established with an initial capital of R$ 100 million, aims to acquire 40-70 SaaS startups by the end of 2020. This highlights the rapid growth and scalability potential of the SaaS market in Brazil.

Key Insights from the SaaS Landscape Research

• SaaS enterprise companies in Brazil are growing faster than those focused on B2C or SMEs.
• 60% of companies take less than six months to recover CAC costs.
• 67% of companies have an LTV/CAC ratio higher than three.
• Inside sales is the preferred go-to-market strategy for SaaS startups.
• 26% of companies have a marketplace component.
• 71% of SaaS startups in Brazil are bootstrapped and have never raised external funding.

Top SaaS Startups in Brazil

Tracxn listed the top 10 SaaS startups in Brazil out of a total of 750. Some of the most prominent include:

• Olista: A multichannel sales platform for SMEs.
• ContaAzul: Online accounting and billing solutions for SMEs.
• Zoop: A white-label payment solution.
• Xerpa: An HRMS platform.

SMEs as Key SaaS Clients

According to a study by Superlógica, 51.4% of SaaS clients in Brazil are SMEs. André Baldini, CEO of Superlógica, emphasized the importance of understanding SME pain points to provide tailored solutions that foster strong client relationships.