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Instagram Tops India’s Creator Economy with 2 Million+ Creators: Kofluence Report 2025

India’s influencer ecosystem matures with hyperlocal growth, AI adoption, and ₹3,000 Cr+ brand spends shaping the future of digital advertising.

by MN4U Bureau
July 9, 2025
in Analysis
Reading Time: 2 mins read
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Instagram Tops India’s Creator Economy with 2 Million+ Creators: Kofluence Report 2025
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Mumbai: Kofluence, an Ad-Tech influencer marketing platform, is proud to unveil the latest edition of its flagship annual publication, Decoding Influence: The 2025 Influencer Marketing Report. Drawing insights from over 1,000 creators, marketers, and industry experts, the study offers an expansive data-led study decoding the evolution of the country’s creator economy and the growing maturity of influencer marketing within digital AdEx.

Sreeram Reddy Vanga
Sreeram Reddy Vanga

“India’s influence economy has not only seen growth but also a decentralisation of influence. There is a dynamic shift with creators in Tier 2 and Tier 3 cities, often creating content in regional and vernacular languages, who are building strongly engaged communities through hyperlocal narratives.

“Amidst a trillion-dollar influencer advertising opportunity in India, we’re seeing brands approach influencer partnerships with far more intention and as a strategic marketing lever, driven by data, sustained by technology, and measured against business outcomes,” observes Sreeram Reddy Vanga, CEO and Co-Founder of Kofluence.

Key Insights from the Report:

Platform Dynamics and Monetisation Shifts: Instagram remains the most creator-focussed platform, with an estimated 1.8-2.3 million Indian creators. Short-form video content has emerged as the preferred monetization vehicle, with commercial rates for Instagram Reels demonstrating strong earning potential, from ₹500-₹5,000 for creators with less than 10,000 followers and starting at ₹2 lakhs and above for mega influencers and celebrities.

Sectoral Influencer Investments: India’s influencer marketing industry is now estimated at Rs. 3,000–3,500 Crores and growing. Sector-wise, E-commerce alone accounts for 23% of the sector’s annual spends, followed by FMCG at 19%. Notably, over one in four brands surveyed said they increase influencer budgets during product or service launches, further reinforcing content creators’ roles in brand discovery and conversion.

Regional And Micro Influence: India’s linguistic and cultural diversity has catalyzed sophisticated regional marketing strategies, with 52% of marketers identifying micro-influencers (10,000-100,000 followers) as optimal for hyperlocal campaigns. Diwali continues to drive the highest seasonal campaign activity, with a majority of brands initiating campaign planning anywhere from two weeks to a month in advance.

AI Integration And Platform Play: The report finds that 61% of brands are now leveraging tech platforms to streamline influencer operations, with 18% fully integrated and 20% in the early transition stage of adopting platform solutions. Additionally, 29% have adopted generative AI for creative content generation, making it the top AI use case for marketing and brand professionals.

Ritesh Ujjwal
Ritesh Ujjwal

“With India crossing 900 million internet users, the creator economy is poised for continued expansion, fueled by government initiatives as well as significant technological advancements. Looking ahead, I believe we are moving towards the phase of integrated influence in which advertising mediums will increasingly converge together.

“Decoding Influence 2025 is built on strong platform intelligence and first-party data, and will give marketers strategic insights on a rapidly evolving industry that is being transformed by AI, cookie deprecation and shifting creator-brand relationships. We hope you will find this report useful as you plan your next steps,” said Ritesh Ujjwal, Co-Founder of Kofluence.

Tags: KofluenceKofluence Report 2025Ritesh UjjwalSreeram Reddy Vanga

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