India’s app market is booming — but global platforms are raking in most of the profits

India’s mobile app market is generating record revenue, with in-app purchases topping $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 growth driver in Q1, generating more than $200 million in in-app revenue — up 44% year-over-year and increasing their share of total spending, Sensor Tower he said in her report. Gains came from categories such as utilities, video streaming and artificial intelligence.

The progress reflects a broader shift in India’s app market, where annual revenue from in-app purchases has grown from $520 million in 2021 to more than $1 billion in 2025 and is projected to reach $1.25 billion this year, per Sensor Tower. While downloads have stabilized at around 25 billion per year, time spent in apps continues to grow, indicating deeper user engagement and greater willingness to pay for digital services.

Much of India’s spending in Q1 was driven by global platforms, with Google One, Facebook, ChatGPT and YouTube among the top gainers. Domestic players were more prominent in video streaming, with JioHotstar and SonyLIV ranking highly. A similar pattern emerged in downloads, where ChatGPT, Instagram and Chinese short drama app FreeReels led the market, followed by Indian apps like Story TV, JioHotstar and Meesho.

India’s app market has matured on the download side, but monetization is picking up as usage deepens and digital payment habits become more integrated, Donny Kristianto, chief market intelligence officer at Sensor Tower, told TechCrunch.

Despite the 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, 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 media and video streaming apps, which dominate the top rankings. Video streaming alone accounts for about half of the top 10 revenue-generating apps, underscoring its massive revenue-generating power, the data showed.

Even so, changes in user demand suggest room for further growth. AI-powered apps saw downloads grow 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 applications are also gaining ground.

Short drama platforms are growing even faster, with downloads increasing more than 400%, led by apps like FreeReels. The trend suggests that India’s app market is still early in its monetization journey, even as new categories broaden what users are willing to pay.