As tech startups such as Meesho, Flipkart, Groww and Razorpay shift their focus back home, a counter-trend is emerging among SaaS (software-as-a-service) founders. A growing number are moving their bases to Silicon Valley, citing the need to stay closer to the nerve centre of artificial intelligence innovation.
These entrepreneurs are betting that proximity to the Valley’s thriving tech ecosystem will be crucial to accelerating their next phase of growth. Arvind Parthiban, CEO and co-founder of SuperOps, is among them. “For us, it’s also about embedding ourselves deeper into the network that powers the future of SaaS. Being on the ground gives us a better pulse on innovation and helps us stay ahead of the curve,” he told FE.
The migration comes amid rising concerns that the explosive growth of generative AI (GenAI) could disrupt the trajectory of traditional SaaS players. Industry voices, including Zoho’s chief scientist Sridhar Vembu, have warned that the AI boom may erode the competitive edge of Indian SaaS startups.
Investors, too, have shifted focus toward GenAI-driven products. According to reports, in 2023, more than 40% of all global AI funding was concentrated in the Bay Area, with GenAI startups in the Valley alone raising over $21 billion. For founders like Parthiban, this makes relocating a logical step. “It’s not just about innovation. It’s also about access to capital, partnerships, and staying aligned with evolving customer expectations,” he said. SuperOps is currently transitioning its headquarters to San Francisco and is looking to strengthen its presence with leadership and core teams on the ground. The company views the move as a strategic one aligned with its scaling ambitions and long-term vision.
As part of its evolution, SuperOps is working to embed AI more deeply within its customer offerings. The company is automating internal workflows and offloading Level 1 support tasks to free up human bandwidth for more strategic work.
A recent Bain & Company report found that 84% of enterprise software buyers in 2024 prioritised tools with embedded AI capabilities. The report also noted that global AI-focused venture capital dry powder has surpassed $35 billion, a strong signal of investors’ preference for GenAI-native products.
“Embedding oneself in the AI epicentre helps compress learning cycles, attract ambitious teams, and stay close to paradigm-shifting breakthroughs. It’s more about future-proofing your company from the inside out,” said Brijesh Damodaran, managing partner at Gurugram-based venture capital firm Auxano Capital. The firm has backed SaaS startups such as Data Safeguard and Trezi. Damodaran advises his portfolio companies to rethink their product architecture with AI at the core, re-frame their value proposition, and build cross-functional teams that can bridge the gap between machine learning and product design.
Startups like Composio, Rocketlane, and Trezix are also reportedly either moving to the US or extending their stays to capitalise on the Valley’s AI momentum. Sunil Kharbanda, co-founder and COO of Surat-based Trezix, said the move is part of a larger strategic shift. “We plan to spend more time in the US, especially in hubs like the Bay Area and East Coast, not just to strengthen investor relations, but to stay immersed in conversations around AI infrastructure, regulatory tech, and vertical SaaS shifts. It’s strategic, not just symbolic,” he said.
Backed by Morphosis Venture Capital and Pentathlon Ventures, Trezix is also evaluating the setup of cross-functional teams in the US for co-innovation, customer success and ecosystem building. “The goal is not relocation, but global orchestration, building where innovation happens, and scaling where value is realised,” Kharbanda said.
Despite the trend, not all SaaS leaders believe that innovation is bound by geography. Naveen Goyal, founder and CEO of Meritto, said that while his company is exploring a global presence, it remains rooted in India. “We are building from India, for the world. The edge doesn’t lie in location. It lies in domain depth. That’s what we have, and that’s what we are scaling,” he said.
Meritto recently launched Mio AI, an Agentic AI tool designed for the education sector. “It was born from the complexity of education systems here but is built to solve for institutions globally from Delhi to Dubai, Singapore to San Francisco,” Goyal noted. The company plans to build satellite teams in key global markets, including the US, Southeast Asia and the Middle East, but will continue to keep its primary operations and growth engine in India.
Analysts say that no doubt the allure of Silicon Valley remains strong, but in all likelihood the SaaS trajectory suggests something like a hybrid future – local innovation and global ambition.