India's mobile in-app purchase revenue tops $300m in Q1 2026

• ChatGPT entered the top three apps by revenue in India
• Short drama apps recorded explosive growth, with downloads rising over 400% YoY
• Gaming downloads remained stable at 1.7bn while revenue increased 15% YoY

India’s mobile app market generated more than $300 million in in-app purchase revenue in Q1 2026, rising 33% year-on-year.

That's according to a new SensorTower report, which showed that total downloads reached 6.2 billion during the quarter, with non-gaming apps accounting for 72% of installs. 

Mobile game downloads held steady at 1.7bn, while revenue grew 15% yoy. Established titles such as Free Fire maintained top positions, supported by live operations and seasonal events.

Puzzle games emerged as a key monetisation driver, with Candy Crush Saga and Royal Match contributing to a 78% increase in genre revenue.

AI-led surge

Generative AI and short drama platforms were key growth drivers, with apps such as ChatGPT seeing strong adoption and revenue growth.

ChatGPT surpassed 300m cumulative downloads in India and entered the top three apps by revenue, signalling increasing willingness to pay for AI-powered services.

Short-form video apps also surged, with platforms like FreeReels gaining traction through strong user acquisition strategies.

You can access the full report here.