India’s mobile app market is generating record revenue, with in-app purchases surpassing $300 million in the first quarter, up 33% year-on-year, according to Sensor Tower – but most of that spending is flowing to global platforms.
Sensor Tower said non-gaming apps were the main driver of growth in the quarter, generating more than $200 million in revenue from in-app purchases – up 44% year-over-year and increasing its share of total spending, Sensor Tower he said in his report. Gains were led by categories including utilities, video streaming and generative AI.
The progress reflects a broader shift in India’s app market, where annual in-app purchase revenue is expected to grow from $520 million in 2021 to 2021. More than $1 billion in 2025 For Sensor Tower, it is projected to reach $1.25 billion this year. While downloads have stabilized at around 25 billion per year, time spent on apps continues to grow, indicating a deeper willingness among users to pay for digital services.
Most of India’s spending in the first quarter was captured by global platforms, with Google One, Facebook, ChatGPT and YouTube among the top gainers. Domestic players, JioHotstar and SonyLIV were more prominent in video streaming with high rankings. A similar pattern emerged in downloads, with ChatGPT, Instagram and Chinese short drama app FreeReels leading the market, followed by Indian apps including Story TV, JioHotstar and Meesho.
India’s app market has matured on the download side, but monetization is accelerating as usage deepens and digital payment habits become more embedded, Donny Christianto, manager of core market insights at Sensor Tower, told TechCrunch.
Despite the gains, India remains a relatively low-spending market, earning around $0.03 per download, compared to more than $0.20 per download in India, 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 is concentrated in a few mature segments, particularly productivity, social media and video streaming apps, which dominate the top ratings. Data shows that video streaming alone accounts for nearly half of the top 10 revenue-generating apps, underscoring its enormous monetization power.
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Nevertheless, changes in user demand offer room for future growth. Generative AI apps saw downloads grow 69% year-over-year, with ChatGPT ranking among the top apps for both installs and revenue. India has long been ChatGPT the largest market by users, as well as other AI applications gain ground.
Short drama platforms are growing even faster, with downloads up over 400%, led by apps like FreeReels. The trend shows that India’s app market is still at the beginning of its monetization journey, even as new categories expand what users are willing to pay.
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