India’s mobile app market hit a record $345 million in consumer spending in the second quarter, rising 35% year over year as non-gaming categories like generative AI, streaming, and productivity apps gain traction.

Generative AI and streaming emerged as the top revenue drivers, while gaming sustained downloads and posted a revenue record, underscoring a diversified monetization mix.

Monetization in India is advancing faster than some international peers, though average revenue per download remains below global benchmarks, signaling substantial growth potential as more users move to paid tiers.

Streaming services and subscription storage are leading the monetization push, reflecting a shift toward recurring revenue models for stability.

JioHotstar ranked third in downloads, buoyed by IPL season and its Tadka short drama, surpassing one billion cumulative downloads and posting its highest monthly active users in May.

Market sustainability hinges on paid-service adoption scaling with expanding user bases into smaller towns and whether spending per user can grow; investors will closely watch upcoming quarterly guidance.

Entertainment platforms, led by JioHotstar, reached over one billion cumulative downloads and reported peak MAUs in May, with Story TV maintaining strength in short drama and advertising spend.

Premium AI services are gaining traction, with Claude rising to second in AI revenue despite fifth in downloads, as consumers are willing to pay for advanced AI capabilities.

Ludo King remained the top downloaded game, with nearly 1 billion downloads in Q3 2026; Arrow titles surged in minimalist puzzles, eFootball rose among top-grossing due to the World Cup, and Kingshot posted explosive revenue growth after its 2025 India launch.

Rapido became India’s leading ride-hailing app by monthly active users in Q2 2026, aided by IPL campaigns and a funding announcement, with record May downloads and strong performance in Hyderabad, Bengaluru, and Chennai.

Meesho emerged as the most downloaded shopping app in Q2 2026, with roughly half of its MAUs coming from markets beyond India's top nine cities, signaling strong regional penetration.

Gaming downloads held steady around 1.9 billion, while gaming revenue rose to a record $106 million, up 10% year over year, outpacing a global gaming market that declined.