India’s mobile app market is experiencing record revenue generation, with in-app purchases surpassing $300 million in the first quarter, a 33% increase from the previous year, as reported by Sensor Tower. However, much of this expenditure is channeled to global platforms.
Non-gaming apps were the primary growth driver in Q1, generating over $200 million in in-app purchase revenue, marking a 44% year-over-year rise and increasing their overall spending share, Sensor Tower said. Categories such as utilities, video streaming, and generative AI led these gains.
This growth indicates a broader shift in India’s app market, where annual in-app purchase revenue grew from $520 million in 2021 to over $1 billion in 2025, with projections to reach $1.25 billion this year, according to Sensor Tower. While downloads have stabilized at around 25 billion annually, time spent on apps is rising, indicating deeper engagement and greater willingness from users to pay for digital services.
A significant portion of India’s Q1 spending was captured by global platforms, with Google One, Facebook, ChatGPT, and YouTube among the top earners. Domestic players were more notable in video streaming, with JioHotstar and SonyLIV ranking highly. In terms of downloads, ChatGPT, Instagram, and the Chinese short-drama app FreeReels led, followed by Indian apps such as Story TV, JioHotstar, and Meesho.
India’s app market has matured in terms of downloads, but monetization strengthens as usage deepens, and digital payment habits become more embedded, Donny Kristianto, principal market insights manager at Sensor Tower, told TechCrunch.
Despite the progress, India remains a relatively low-spending market, generating about $0.03 in revenue per download, compared to over $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 few mature segments, particularly productivity, social media, and video streaming apps, which dominate the top rankings. Video streaming alone accounts for about half of the top 10 revenue-generating apps, emphasizing its significant monetization power, the data showed.
Nonetheless, shifts in user demand suggest potential for further growth. Generative AI apps saw downloads rise 69% year-over-year, with ChatGPT ranking among the top apps by both installs and revenue. India has long been ChatGPT’s largest market by users, while other AI apps are also gaining ground.
Short drama platforms are growing even faster, with downloads increasing by more than 400%, led by apps like FreeReels. This trend indicates that India’s app market is still in the early stages of monetization, even as new categories expand what users are willing to pay for.