Truecaller faces challenges as it grows in size

Truecaller is one of the world’s most used caller ID platforms, which has more than 500 million users. It is now entering a critical phase as growth slows in its largest market and competition intensifies across mobile networks and mobile platforms.

Most of Truecaller’s growth is driven by India, which accounts for it more than 350 million usersor about 70% of its global base. The volume of spam and unwanted calls has turned the app from a simple caller ID to an integrated part of everyday communication.

That position is now forming its next phase. The company has released products such as AI assistant and Family Protection to money managementbesides tools like Community Opinion stay relevant as the competition grows. These come in the form of telecom-led solutions such as Calling Name Presentation (CNAP), list of volunteer numbers for guaranteed business calls, and AI-based spam protection getting opportunities in India. Currently, smartphone manufacturers incl apple and Google continue to build caller ID and anti-spam capabilities into their systems.

As the competition grows, Truecaller’s growth is shrinking. Data shared by TechCrunch from Sensor Tower shows downloads from India fell by 16% annually in 2025, while global downloads fell by 5%, a reversal after several years of growth. Various Appfigures show downloads peaked at 175 million in 2021, dropped sharply in 2022 and have since hovered around 120 million per year.

India remains Truecaller’s largest market, but its download share has dropped from a peak of 70% to the mid-50s in recent years, reflecting a gradual shift in user growth to other markets.

Truecaller’s change in growth rate is monitored by investors. The company’s shares have fallen about 78% since its 2021 IPO and are down about 37% so far this year, reflecting investors’ concerns about its growth and business model. Chief Executive Rishit Jhunjhunwala told TechCrunch that one of the key questions from investors is the impact of CNAP in India. He also acknowledged that it has become more difficult in some areas of the business, without elaborating.

CNAP, work imposed by India’s telecom regulator and it is it is used by telecom manufacturersdisplays caller names based on KYC records on the network without the need for third-party software. This overlaps with one part of Truecaller’s offering, but it’s much smaller.

Truecaller’s Jhunjhunwala said the company does not see CNAP as a distraction but as a confirmation of the problem.

“Truecaller operates as a global platform with rich and powerful intelligence – from spam detection, fraud prevention, business identity, and user experience across calls and messages,” he said. “This allows us to go much further than caller ID.”

Bharath Nagaraj, director of equity research at Cantor Fitzgerald, said CNAP may slow user growth but is unlikely to disrupt Truecaller’s core business anytime soon. Instead, he pointed to pressure in the company’s ad division — driven by Google’s transformation — as a looming problem.

“If you look at the company’s revenue, 65%-70% of it now comes from advertising revenue. And that has had an impact recently,” Nagaraj told TechCrunch.

In his own last call received (PDF), Truecaller said it lost about a third of its ad sales from its biggest partner in August 2025 – the peer-to-peer mobile app that used to be Google. Jhunjhunwala said the decline was due to an “algorithm problem” that had not been resolved, while CFO Odd Bolin said the partner accounted for more than a third of the total revenue. The company is now adding new partners and creating local trading exchanges to reduce reliance on a single platform.

But even moving to inbound marketing won’t solve the problem. Marketing remains highly competitive, with brands able to use multiple digital platforms, Nagaraj said. “You can show your ad on Truecaller, but you can also show it on Facebook,” he said.

In-program funding continues to grow

The push for advertising comes even as parts of Truecaller’s business are on a different path. Data from Appfigures shows that although downloads have grown significantly in recent years, the revenue generated within the program has increased significantly – from $ 600,000 in 2017 to $ 39.3 million in 2025. It has already reached $ 13.4 million this year as of April 20.

Monthly revenue from in-app purchases on Truecaller now exceeds $2 million and rising, according to Appfigures.

The presence of Truecaller on iOS has also grown from 5% of all downloads in 2020-2021 to about 11-12% in recent years, according to Appfigures, reflecting the changing market value. The company has increased efforts on the Apple platform, including implementation Real-time caller ID for iPhone At the beginning of the year 2025 it will release an update to be compatible with its Android application.

However, Apple has recently improved its mobile surveillance capabilities, which may reduce the need for third-party software among iPhone users.

Another key pillar of Truecaller’s monetization strategy is its business offering, Truecaller for Business, which helps companies verify their identity and connect with customers through phone calls and text messages. The sector has been growing, and revenue rose 39% in total revenue in 2025. Truecaller’s Jhunjhunwala said the company is expanding the platform globally by opening up its chat to peers and offering tools like verified caller ID to help businesses verify identity and reach customers.

On the business side, Truecaller has been growing its subscription business, which has more than 4 million paying subscribers worldwide, with many users opting for features like advanced spam protection, AI-based call tracking, and ad-free experience.

In the past, Truecaller has been criticized for the way it builds and maintains its large phone database. An search by The Caravan has raised questions about consent and data collection methods, especially in India, where data protection laws have so far been lax. Truecaller has denied wrongdoing and maintains that it complies with applicable laws, but the controversy underscores the larger issue of balancing demand, growth, and user privacy.

Despite all these challenges, Truecaller sees room for growth. The company is focusing on tackling the growing problem, Jhunjhunwala said, as spam calls and scams grow exponentially with advances in AI. Likewise, it plans to expand all three revenue streams — advertising, business services, and premium subscriptions — as it looks to drive growth in all markets. Whether that will be enough, however, will depend on how quickly it changes as caller ID moves from stand-alone software to the network, and the phone itself.