Glossary
ARR Growth Rate
The percentage increase in annualised recurring revenue over a defined period. 100%+ YoY is the Indian Series A bar; 50% at Series B.
By Amit Tyagi, Fitoor Capital · AletheiaAI Glossary
Definition
ARR Growth Rate measures the percentage change in Annual Recurring Revenue over time, usually quoted YoY (year-over-year) or monthly.
Formula: YoY ARR Growth = (Current ARR - ARR 12 Months Ago) / ARR 12 Months Ago × 100.
Benchmarks: Indian Series A bar is 100%+ YoY growth at ₹3-10Cr ARR. Series B bar is 50-100% YoY at ₹25-75Cr ARR. Growth slows as ARR scales — the 'doubling rate' shrinks naturally.
India Context
Indian SaaS Series A investors specifically scrutinise growth quality: is the growth coming from new logos or expansion? From repeatable channels or founder-led sales? From sustainable pricing or one-time discounts? Headline 100% YoY growth means different things depending on the composition.
Example
SaaS at ₹2Cr ARR in May 2025 grows to ₹5Cr ARR by May 2026. YoY growth = (₹5Cr - ₹2Cr) / ₹2Cr = 150%. Strong by Indian Series A standards; investors will probe whether the additional ₹3Cr came from new logos (good), upsell to existing (very good), or a single large enterprise contract (concerning concentration risk).
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