India’s software market is booming – but international platforms are reaping the benefits

India’s mobile app market is booming, 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 goes to global platforms.

Non-gaming apps were the driving force behind growth in Q1, generating more than $200 million in in-app purchases – up 44% year-over-year and adding to their revenue share, Sensor Tower. he said in his report. The benefits were led by teams that included support, video streaming, and artificial intelligence.

The progress reflects a major shift in the Indian software market, with in-app spending rising from $520 million in 2021 to. more than $1 billion in 2025 and is expected to reach $1.25 billion this year, per Sensor Tower. While downloads have stabilized at around 25 billion per year, time spent on apps continues to grow, reflecting deep engagement and a greater willingness among users to pay for digital services.

Most of India’s spending in Q1 was captured by global platforms, with Google One, Facebook, ChatGPT, and YouTube being some of the top earners. Domestic players were the most popular in video streaming, with JioHotstar and SonyLIV at the top. A similar trend was seen in downloads, where ChatGPT, Instagram, and Chinese short app FreeReels led the market, followed by Indian apps including News TV, JioHotstar, and Meesho.

The app market in India has grown in the download segment, but monetization is growing as usage grows and digital payment methods take hold, Donny Kristianto, director of market analysis at Sensor Tower, told TechCrunch.

Despite the gains, India is still a low-cost market, generating about $0.03 in revenue per download, compared to $0.20 in Southeast Asia and Latin America, Sensor Tower data shared with TechCrunch showed.

Although new categories are driving growth in the mobile software market in India, spending remains in a few mature sectors, particularly productivity, social media, and video streaming software, which are leading the way. Video advertising alone accounts for nearly half of the top 10 revenue-generating programs, underscoring its potential for revenue generation, it showed.

Even so, the changing needs of the population provide additional opportunities. Generative AI software posted growth of 69% year-over-year, while ChatGPT ranked among the top software in terms of placement and revenue. India for a long time with ChatGPT a very large market and users, while other AI programs are as well to find a place.

Short-form platforms are growing rapidly, with over 400% downloads, led by programs like FreeReels. The trends show that the Indian software market is still early in its monetization journey, even as new groups are expanding what users are willing to pay for.