India’s mobile app market is generating record revenue, with in-app purchases surpassing $300 million in the first quarter, up 33% year-over-year, according to Sensor Tower, but much of that spending flows to global platforms.
Non-gaming apps were the main driver of growth in the first quarter, generating more than $200 million in in-app purchase revenue, up 44% year-over-year and increasing their share of overall spending, according to Sensor Tower. saying in his report. Gains were led by categories including utilities, video streaming and generative artificial intelligence.
The progress reflects a broader shift in India’s app market, where annual revenue from in-app purchases has risen from $520 million in 2021 to more than $1 billion by 2025 and is expected to reach $1.25 billion this year, according to Sensor Tower. While downloads have stabilized at around 25 billion a year, time spent on apps continues to grow, pointing to deeper engagement and greater willingness among users to pay for digital services.
Much of India’s spending in the first quarter was captured by global platforms, with Google One, Facebook, ChatGPT and YouTube among the biggest earners. Domestic players were most prominent in video streaming, with JioHotstar and SonyLIV taking the top positions. A similar pattern emerged in downloads, where ChatGPT, Instagram and Chinese short drama app FreeReels led the market, followed by Indian apps such as Story TV, JioHotstar and Meesho.
India’s app market has matured on the download side, but monetization is strengthening as usage deepens and digital payment habits become more entrenched, Donny Kristianto, senior manager of market insights at Sensor Tower, told TechCrunch.
Despite the gains, India remains a relatively low-spending market, generating around $0.03 in revenue per download, compared to more than $0.20 in Southeast Asia and Latin America, Sensor Tower data shared with TechCrunch showed.
While newer categories are driving growth in India’s mobile app market, spending remains concentrated in a handful of mature segments, particularly productivity, social networking and video streaming apps, which dominate the top rankings. The data showed that video streaming alone accounts for about half of the top 10 revenue-generating apps, underscoring its enormous monetization power.
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Still, changes in user demand suggest there is room for further growth. Generative AI app downloads increased 69% year over year, and ChatGPT ranked among the top apps by both installs and revenue. India has long been the country of ChatGPT largest market by users, while other AI applications are also gaining ground.
Short drama platforms are growing even faster, with downloads increasing by more than 400%, led by apps like FreeReels. The trend suggests that India’s app market is still at an early stage in its monetization journey, even as new categories expand what users are willing to pay.
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