India’s mobile app revenue jumps 33% to $300 million, led by AI and short-form content surge

Mobile app revenue in India shot up 33% to $300 million in the first quarter of this calendar year, from the same period a year ago, according to Sensor Tower’s App Performance Insights data.

Two thirds of the total revenue from in-app purchases came from non-gaming apps, the report added. Specifically, the report revealed that non-gaming apps, including generative AI apps such as ChatGPT, contributed over $200 million in in-app revenue, growing 44% year on year.

Between January and March, the market recorded 6.2 billion downloads, with non-gaming apps accounting for a dominant 72% share.


The report revealed that both monetisation and download growth were fuelled by generative AI tools and short-drama platforms, alongside continued traction in e-commerce and fintech.

Generative AI apps saw downloads jump 69% YoY, with ChatGPT crossing 300 million cumulative downloads in India and entering the top three by revenue, signalling growing user willingness to pay for AI-driven productivity tools.

Meanwhile, short-drama apps also witnessed explosive growth, with downloads surging 403%. Platforms such as FreeReels, Story TV and Kuku TV secured multiple spots among the top apps. FreeReels alone recorded a 520% quarter on quarter increase in downloads, driven by aggressive digital advertising, primarily on Meta platforms, and strong appeal among users under 34.

Meanwhile gaming apps saw stable gains, as downloads held steady at over 1.7 billion, while revenue rose 15% year on year.