Mumbai: India’s mobile app market reached a new milestone in the second quarter of 2026, with in-app purchase (IAP) revenue climbing to a record $345 million, up 35% year-on-year, while app downloads crossed 6.6 billion, the highest level since January 2024, according to Sensor Tower.
The report highlighted that non-gaming apps continued to dominate the ecosystem, accounting for 70% of total downloads and generating nearly $240 million in revenue, reflecting more than 50% year-on-year growth. Entertainment, e-commerce and quick commerce platforms drove download growth, while Generative AI and entertainment apps emerged as key contributors to monetisation gains.
The short drama segment continued its rapid expansion in India, with cumulative downloads surpassing 800 million. Story TV strengthened its leadership by emerging as the country’s No.1 short drama app and the only short drama platform to feature among India’s Top 10 most downloaded apps during Q2 2026. The platform also posted over 50% quarter-on-quarter revenue growth while nearly tripling its digital advertising spend during the first half of 2026, according to Sensor Tower Pathmatics.
Gaming downloads remained stable at around 1.9 billion, signalling a maturing market. Despite modest user growth, gaming revenue reached a record $106 million, rising 10% year-on-year and outperforming the global mobile gaming market, which witnessed a decline over the same period.
ChatGPT leads downloads; Meesho tops shopping category
According to Sensor Tower’s App Performance Insights, ChatGPT emerged as India’s most downloaded non-gaming app in Q2 2026, followed by JioHotstar, Story TV, Blinkit and Rapido, underlining the continued momentum of AI, entertainment and local services.
India has become one of ChatGPT’s largest global markets, with cumulative downloads crossing 358 million. Sensor Tower’s State of AI 2026 report also noted that ChatGPT became the fastest mobile application to reach one billion monthly active users globally.
JioHotstar ranked third in downloads, driven by the IPL season and the launch of its short drama offering, Tadka. The platform crossed one billion cumulative downloads, becoming India’s first entertainment app to achieve the milestone while recording its highest-ever monthly active users (MAUs) in May.
Among shopping platforms, Meesho emerged as India’s most downloaded shopping app during the quarter, with nearly 46% of its monthly active users coming from markets beyond India’s top nine cities, highlighting its deep penetration into regional and lower-tier markets.
Rapido also registered record monthly downloads in May and became India’s leading ride-hailing app by monthly active users during Q2, supported by its IPL campaign and funding announcement.
AI subscriptions and streaming drive revenue
Revenue rankings continued to be led by AI productivity, video streaming and social media platforms. Among AI applications, Claude emerged as one of the fastest-growing monetisation stories, recording a more than 19-fold increase in revenue year-on-year while climbing to the No.2 position by revenue within the Generative AI category.
Video streaming platforms also strengthened monetisation, with Crunchyroll becoming India’s highest-grossing Media & Entertainment app for the first time since entering the market, supported by major anime releases and its updated global subscription strategy.
Ludo King retains gaming lead
India’s mobile gaming market regained momentum during Q2 2026, with downloads touching nearly 2 billion, up 14.2% quarter-on-quarter, reversing the global decline.
Ludo King retained its position as India’s most downloaded mobile game and is on track to reach one billion cumulative downloads in the country during Q3 2026.
Arrow puzzle games also witnessed rapid growth, with Arrow Puzzle, Arrows Puzzle Escape and Arrows GO! securing the second, third and fourth spots respectively, reflecting increasing consumer interest in minimalist puzzle titles.
On the revenue front, eFootball climbed into India’s top five highest-grossing mobile games after registering a 214% year-on-year surge in downloads, aided by the 2026 FIFA World Cup. Meanwhile, strategy title Kingshot posted more than a 13-fold increase in revenue following its India launch in 2025.
Sensor Tower noted that India’s app ecosystem continues to evolve from being primarily a user acquisition market into one increasingly driven by monetisation, with AI subscriptions, digital entertainment and ad-supported gaming creating new growth opportunities at scale.
