New Delhi: India's mobile app market achieved a significant monetisation milestone in the first quarter of 2026, with total revenue surpassing $300 million (approximately Rs 2,500 crore), marking a 33% year-on-year increase, according to a Sensor Tower report.
In Q1 2025, the total revenue stood at roughly $225 million. The market recorded 6.2 billion downloads during the quarter, underscoring India's continued scale. However, the report highlights a clear shift from volume to monetisation, with non-gaming apps driving growth. These apps accounted for 72% of total downloads and generated over $200 million in in-app purchase (IAP) revenue, growing 44% year-on-year. Non-gaming IAP revenue in Q1 2025 was around $140 million.
Gaming Sector Shows Slower Momentum
Gaming, while stable, exhibited slower momentum. Downloads remained above 1.7 billion, while revenue grew 15% year-on-year, still higher than the global average growth of 0.4%.
Key Demand Drivers: Generative AI and Short Drama Apps
Generative AI and short drama apps emerged as key demand drivers. AI-led apps saw a 69% year-on-year rise in downloads, while short drama platforms surged by 403%. ChatGPT crossed 300 million cumulative downloads in India and ranked among the top three apps by revenue.
