Will AI Kill SaaS? LeadSquared CEO On Navigating The AI Disruption

When someone like Microsoft CEO Satya Nadella says AI , it’s natural for alarm bells to go off. But for SaaS unicorn LeadSquared and its CEO Nilesh Patel, AI is not a disruption, it’s another opportunity to unlock more value.

Nadella’s podcast went viral but even before that the software-as-a-service (SaaS) ecosystem has had to adapt to the AI reality. But Patel claims, “Instead of AI replacing SaaS solutions, we should be saying that SaaS companies will innovate and embed AI into their products that enterprises can adapt.”

LeadSquared, founded in 2011 by Patel, Prashant Singh and Sudhakar Gorti, currently employs more than 900 people and naturally, the rise of AI agents and GenAI has become a focal point for the SaaS unicorn. .

LeadSquared’s SaaS suite helps enterprises and startups optimise their sales operations, generate sales leads faster and automate marketing operations.

 

The Bengaluru-based company has raised $204 Mn in funding from the likes of Westbridge Capital, IFC, besides among numerous investors.

In FY24, LeadSquared posted revenue of INR 279.3 Cr, around 10% higher than the INR 255.9 Cr of FY23, but its from INR 161 Cr. The company is yet to file its financials for FY25, but Patel claimed the company is on track to become cash-flow positive and reach $100 Mn ARR soon.

The founder told us that LeadSquared has a rapidly growing customer base of over 1,800 clients across diverse industries and geographies, with India and the US being the strongest markets. “In India, we have a strong footprint in the BFSI, education, healthcare to drive outcomes in areas of customer acquisition and customer experience,” he adds.

So how exactly has AI disrupted the SaaS ecosystem and LeadSquared in particular and how exactly Patel differs from Nadella and others who might believe that AI agents or GenAI apps are ready to replace SaaS.

Edited excerpts from the conversation:

Inc42: SaaS companies have seen disruption from the expansion of Gen AI models. How does LeadSquared navigate this challenge?

Nilesh Patel: We see generative AI not as a disruption, but as an opportunity to deliver more value across the board. Our focus is to seamlessly integrate AI into our platform to drive measurable outcomes in sales, marketing, and customer experience.

We have spoken with a cross-section of our customers and non-customers to build a deeper understanding of use cases and pain points in AI-driven solutions. These interactions are key inputs for us to drive our AI roadmap across product lines.

LeadSquared is integrating AI where it truly matters – boosting sales productivity, enhancing marketing efficiency, and elevating customer experiences. While AI can automate routine tasks and create intelligent workflows, we don’t believe it will replace people. Instead, it will support them – freeing teams to focus on creative, high-impact work.

Inc42: Coming to the SaaS landscape, especially in the backdrop of the SaaS-is-gone debate, how do you see the future of SaaS in India?

Nilesh Patel: I strongly believe that the future of SaaS in India is incredibly promising and the country is well on course to become a global SaaS powerhouse. There are several key trends that will shape this growth. Let me give you a rundown.

Agentic AI and automation: The SaaS industry is in the middle of changes driven by Agentic AI, deeper AI integration into workflows, and automation that delivers meaningful and intelligent solutions. The future of sales and marketing automation will not just be about process automation, but about hyper-personalisation, enhanced user experiences, and greater accessibility through no-code or low-code platforms.

Vertical SaaS growth: Industry-specific SaaS platforms tailored for BFSI, healthcare, and education will see exponential adoption as companies seek solutions designed for their unique challenges.

Global expansion: Indian SaaS companies will increasingly expand to international markets, with strong demand in the US, Middle East, and Southeast Asia. With India emerging as a global SaaS hub, we believe the sector will continue to thrive, creating new opportunities for businesses and entrepreneurs alike.

Inc42: How have you integrated AI tools to enhance operational efficiency?

Nilesh Patel: We use AI tools in engineering, product design, customer outreach and service and in our internal operations across departments. In each of the departments, the primary driver has been around how to gain efficiency and improve the quality of outcomes.

One of our key focus areas is predictive AI, which helps assess a prospect’s purchasing potential, enabling businesses to prioritise high-intent leads and optimise their sales efforts. AI is also helping with customer support and engagement through features like our knowledge base bot, which automatically responds to queries and reduces interaction load by up to 60%.

Features such as ticket summaries analyse conversations, tag issues, detect sentiment, and recommend next actions, while response refinement ensures consistency and professionalism across communications.

Inc42: You said your focus relies heavily on the US and overseas markets. Do you see a demand slowdown in those markets?

Nilesh Patel: While macroeconomic shifts have impacted the market globally, LeadSquared continues to see strong demand. Our core focus remains on India and the US, with BFSI, healthcare, manufacturing, and education driving growth in India.

Our priority is sustainable growth and profitability. We are within striking distance of becoming cash-flow positive and making steady progress towards achieving the $100 Mn revenue milestone. At the same time, we are putting key growth drivers in place to ensure high double-digit growth on a sustainable basis.

Inc42: Are you looking at a public listing in India or the US?

Nilesh Patel: We believe that an IPO is a significant milestone for any business. We are stepping up our focus on strengthening our market position, scaling our operations, and improving our profitability, before going for a public issue.

We are actively evaluating the best time for a potential listing, considering investor sentiment, market conditions, and regulatory frameworks. While we haven’t set any deadline for it, we are ensuring our financial, governance, and operational frameworks align with IPO requirements, laying the groundwork for a seamless transition when the time is right.

 

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