2025-08-12

 Valuing a SaaS Company with ?5 Cr ARR

 Valuing a SaaS Company with 5 Cr ARR

In SaaS, valuation is not about today’s profits  it’s about recurring revenue, customer stickiness, and scalability.

Let’s look at how we valued a growing B2B SaaS startup generating 5 Cr in ARR.

 

 Company Snapshot:

  •  B2B SaaS offering subscription-based automation tools
  • ARR: ?5 Cr with 80% renewal rate
  •  Clients: 120+ SME accounts
  •  CAC payback: 10 months
  •  EBITDA: ?80 lakhs
  •  Raising ?6 Cr Series A at ?60 Cr pre-money

 

 Valuation Approaches Applied:

1 Revenue Multiple (ARR-based)

  • Industry comps: 8–12× ARR for high-growth SaaS
  • Adjusted multiple: 10×, considering churn, TAM, and MoM growth
  • Valuation = ?5 Cr × 10 = ?50 Cr (Base anchor)

 

2 EBITDA Multiple (Secondary Cross-check)

  • EBITDA: ?80 lakhs
  • Multiple used: 20–25× (due to scalability & SaaS model)
  • Valuation: 16–20 Cr (Used only for downside scenario)

 

3 VC Method (Exit-Based)

  • Exit in 5 years at ?300 Cr valuation
  • 5x–6x return expected
  • Present value = ?50–60

 Why the ?60 Cr Pre-Money Was Justified:

 Strong retention + growth + scalable infra
 SaaS has high capital efficiency
 Market demand + IP-driven moat
 Valuation driven by revenue quality, not just quantity

 

 Takeaway:

“In SaaS, 5 Cr revenue can fetch 50–60 Cr in valuation  if your revenue is sticky, scalable, and growing.”

 

Next Up: Why NAV Sometimes Outranks DCF – Real Estate Holding Case

 

 

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Frequently Asked Questions

We provide professional valuation services across the following asset classes:
  • Land & Building (Residential, Commercial, Industrial, Agricultural)
  • Plant & Machinery (Manufacturing units, industrial assets)
  • Securities or Financial Assets (Equity shares, debentures, startups, AIFs)
  • Specialized Valuations for M&A, financial reporting, IBC, income tax, and more

Yes, our reports are fully compliant with applicable laws including:
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Absolutely. We have IBBI-Registered Valuers under all three categories—Land & Building, Plant & Machinery, and Securities/Financial Assets. Our team also includes experienced chartered accountants and engineers.

We serve a wide range of clients including:
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Our process is simple and efficient:
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  2. Document collection and site visit (if needed)
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Key documents generally include:
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  • Latest financials
  • Company PAN, GST, or registration
  • Cap tables or investment details (for startups)

Turnaround time:
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  • Financial Assets / Startups: 1–7 working days
  • Fast-track services available on request.

Valuation may be required for:
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Yes, we specialize in:
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Our fees are competitive and project-specific, based on:
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Our detailed reports feature:
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Yes. We offer remote/desk-based valuation for startups, financial assets, and select use-cases. For physical assets, we usually require on-site verification.

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