India’s mobile app market is generating record revenue, with in-app purchases exceeding $300 million in the first quarter, up 33% year-on-year, according to Sensor Tower, but much of that spending is flowing 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 growing as a share of overall spending, Sensor Tower said in the report. Categories including utilities, video streaming, and generative AI led the gains.
These developments reflect broader changes in the Indian app market. Annual in-app purchase revenue has grown from $520 million in 2021 to over $1 billion in 2025, and is expected to reach $1.25 billion this year, per Sensor Tower. While the number of downloads has stabilized at around 25 billion per year, time spent in apps continues to increase, indicating users are becoming more engaged and willing to pay for digital services.
The majority of spending in India in the first quarter was on global platforms including Google One, Facebook, ChatGPT, and YouTube. In video streaming, domestic players were more prominent, with JioHotstar and SonyLIV ranking high. A similar pattern was seen in downloads, with ChatGPT, Instagram and Chinese short-form drama app FreeReels leading the market, followed by Indian apps including Story TV, JioHotstar and Meesho.
India’s app market is mature in terms of downloads, but monetization is strengthening as usage grows and digital payment habits become more ingrained, Donny Kristianto, senior market insights manager at Sensor Tower, told TechCrunch.
Despite these gains, India remains a relatively low-spending market, generating about $0.03 in revenue per download compared to more than $0.20 in Southeast Asia and Latin America, according to Sensor Tower data shared with TechCrunch.
Although new categories are driving the growth of the Indian mobile app market, spending remains concentrated in a few mature segments, particularly productivity, social media and video streaming apps, which occupy the top positions. Data shows that video streaming alone accounts for about half of the top 10 revenue-generating apps, highlighting its enormous revenue-generating power.
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Nonetheless, changes in user demand suggest room for further growth. Downloads of generative AI apps increased 69% year-over-year, with ChatGPT ranked as one of the top apps in terms of installs and revenue. India has long been ChatGPT’s largest market in terms of users, with other AI apps also gaining ground.
Short-form drama platforms are growing even faster, with downloads increasing by more than 400%, led by apps like FreeReels. These trends suggest that India’s app market is still in the early stages of its monetization journey, even as new categories expand users’ willingness to pay.
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