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Mint
10-06-2025
- Business
- Mint
AI-native startups edge out SaaS in investor playbooks as tech shift accelerates
India's venture capital ecosystem is undergoing a pivotal shift in 2025, with investors increasingly backing artificial intelligence (AI)-native startups over traditional software-as-a-service (SaaS) players. Between January and 4 June, AI-focused startups raised $454 million across 65 deals, slightly surpassing SaaS firms, which drew $432 million over 52 deals, according to data from Venture Intelligence. While some overlap exists as SaaS companies adopt AI features, the trend points to a deeper reset in investor priorities. 'AI-led startups are commanding 3–4x valuation premiums over traditional SaaS businesses, thanks to their potential for faster scalability and deeper, more transformative use cases," said Abhinav Chaturvedi, partner at Accel. Also read: 10 Indian AI startups and products to watch out for Blurring boundaries However, to stay competitive with pure-play AI startups, many SaaS companies are now streamlining operations and aggressively investing in artificial intelligence, according to multiple industry executives. This trend is pushing established SaaS companies to retool quickly. 'If SaaS companies don't integrate AI, they are unlikely to survive the next 2–3 years," said Nitin Bhatia, managing director at DC Advisory. 'We're seeing the switch happen where pure-play SaaS startups don't exist anymore. AI is becoming a fundamental part of what they offer—whether it's to enhance customer experience or product capabilities." This transition is also shaping the investment strategies of venture capital firms such as Stellaris Venture Partners, Bessemer Venture Partners, and Accel, who see the convergence of AI and SaaS playing out across their portfolios. Accel's Chaturvedi pointed to SaaS portfolio companies like Chargebee, which is exploring newer monetisation models like usage-based pricing, and BrowserStack and Testsigma, which are embedding AI to automate testing—showing how legacy players are not just adapting but helping shape this transformation. Some of the largest AI-linked fundraises this year include Netradyne's $90 million, SpotDraft's $54 million, and Infinite Uptime's $35 million rounds, according to Venture Intelligence data. The narrowing gap between AI and SaaS deal volumes underscores growing investor appetite for pure-play AI models. Deal data reflects this shift: in 2024, there were 193 SaaS deals versus 145 AI deals. A year earlier, SaaS saw 159 deals compared to just 96 in AI. While SaaS still leads in terms of overall capital raised, AI startups are quickly gaining ground with more focused, domain-specific solutions. Also read: Meta in talks to invest nearly $10 billion in artificial intelligence startup Scale AI Even within traditional SaaS portfolios, companies are recalibrating. 'Our existing SaaS portfolio companies are investing aggressively in AI capabilities. From Whatfix in the digital adoption space to Factors in marketing automation, most of our portfolio companies are already using AI to add features, increase convenience and reduce cost for their customers," said Ritesh Banglani, founding partner at Stellaris Venture Partners. According to Banglani, more than 80% of Stellaris' B2B SaaS deal flow is now led by AI-centric solutions. 'This shift will transform every process within an enterprise from marketing and sales to accounting and finance," he added. A generational shift Industry veterans believe the shift marks a generational reset for Indian software startups. SaaS inflows have dried up, Zoho founder Sridhar Vembu said last week, attributing it to rising investor appetite for AI and growing profitability pressure on SaaS firms. He noted that artificial intelligence is now superseding traditional SaaS models in funding priority. Still, the broader outlook for SaaS remains strong—with a caveat. In August, Bessemer Venture Partners projected that the Indian SaaS market could generate three times more revenue by 2030 compared to today, driven in large part by the infusion of AI. In 2025, Indian SaaS is expected to clock $25 billion in annual recurring revenue. Bessemer also expects India to see a similar shift as the global SaaS wave of the late 2010s—with AI software exports playing a bigger role in the $400 billion global services market. As the Indian startup ecosystem matures, the once-clear boundaries between SaaS and AI are dissolving—with capital, innovation and talent increasingly flowing toward platforms that can do both. Also read: Boom in AI fuels a flurry of startups
Yahoo
22-05-2025
- Business
- Yahoo
Conversational AI veteran Christopher Hieb joins Inbenta
DALLAS, May 22, 2025 (GLOBE NEWSWIRE) -- Inbenta, a global innovator in AI-powered solutions for customer and employee experiences, is proud to announce the addition of Christopher Hieb to its team as Strategic Advisor. With an extensive background in software technology investment banking and expertise in Conversational AI, Customer Interaction Management (CIM), and analytics, Hieb brings invaluable insights to help drive Inbenta's continued growth. 'Christopher's wealth of experience and deep understanding of AI-driven technologies make him an exceptional addition to our advisory team,' said Melissa Solis, CEO of Inbenta. 'His strategic vision and ability to anticipate shifts in the market will be instrumental as we refine our solutions and broaden our reach globally.' Hieb has built a remarkable career in financial services, advising technology-focused clients and guiding investments in AI and CX solutions. He has held senior roles at renowned firms such as DC Advisory, Signal Hill Capital, and Macquarie Group. As a Managing Director, he specialized in software and services, focusing on driving growth in CIM, CXaaS, analytics, and AI-powered applications. In addition to his professional achievements, Hieb is an accomplished author, with two published books — CIM Investment Thesis Insights I and II. These works delve into the evolving landscape of AI-enriched customer interaction solutions and serve as valuable resources for leaders navigating this rapidly advancing field. 'I'm honored to partner with Inbenta as a Strategic Advisor,' Hieb stated. 'AI-powered technologies are transforming business interactions, and Inbenta's innovative solutions are uniquely positioned to address the growing complexity of customer and employee experiences. I look forward to collaborating with the talented team at Inbenta as they continue to deliver world-class tools for automation and personalization.' Hieb's appointment coincides with Inbenta's sustained momentum in the AI solutions space. As businesses increasingly adopt Conversational AI to streamline operations and enhance user experiences, Hieb's perspective will assist in shaping Inbenta's strategic growth initiatives in key areas. **About Inbenta** Inbenta is a global leader in AI-powered experience solutions, helping organizations automate interactions, reduce operational costs, and enhance satisfaction across all communication channels. Its state-of-the-art Conversational AI platform helps businesses deliver consistent, personalized, and efficient customer and employee experiences. Trusted by leading brands worldwide, Inbenta is committed to innovation and excellence in everything it does. Want to see Inbenta in action? Book a demo. CONTACT info@ +1 888 995 6936
Business Post
01-05-2025
- Business
- Business Post
DC Advisory hires ex-EY executive as new managing director for Irish corporate finance offshoot IBI
Appointment DC Advisory hires ex-EY executive as new managing director for Irish corporate finance offshoot IBI Robert Hussey joins from EY, where he spent eight years and advised on multi-million euro M&A deals Fionn Thompson 05:00 Robert Hussey spent eight years at EY and has over 30 years of technology M&A experience.
