Truecaller Faces Challenges as Growth Slows
Truecaller, a leading caller identification platform with over 500 million users worldwide, is entering a pivotal phase as its growth slows, particularly in India, its largest market. As competition intensifies within telecom networks and smartphone platforms, Truecaller is seeking new ways to sustain and enhance its user base.
India: The Powerhouse Market
India is the backbone of Truecaller’s growth, accounting for approximately 350 million users—about 70% of its global base. The app has transformed from a simple caller ID tool into an essential part of daily communication, helping users navigate spam and unwanted calls efficiently.
Innovative Features to Stay Relevant
To combat the slowdown and stay competitive, Truecaller has rolled out several features including an AI Assistant, Family Protection, and Community Suggestions. These innovations aim to enhance monetization and keep the user base engaged. This shift has come as telecom solutions like Calling Name Presentation (CNAP) and AI-driven spam protection have become more prevalent in India. Meanwhile, major smartphone manufacturers like Apple and Google are integrating their own caller identification and spam-blocking technologies directly into their operating systems.
Growth Decline in Download Rates
Despite its successful adaptations, Truecaller is experiencing a noticeable decline in downloads. According to data from Sensor Tower shared with TechCrunch, downloads in India fell by 16% year-on-year in 2025, while global downloads dropped by 5%. This downturn follows a period of strong growth; downloads peaked at 175 million in 2021 but have since stabilized around 120 million annually.
Shifting Dynamics in User Growth
While India remains Truecaller’s largest market, its share of global downloads has slipped from over 70% to the mid-50s in recent years, indicating that new user growth is shifting toward other regions.
Investor Concerns and Share Performance
Truecaller’s changing growth dynamics are drawing the attention of investors, especially since the company’s shares have plummeted around 78% since its IPO in 2021, and are down 37% so far this year. CEO Rishit Jhunjhunwala highlighted investor questions regarding the impact of CNAP, acknowledging the challenges the business is facing.
Understanding CNAP and Its Impact
CNAP displays caller names based on KYC (Know Your Customer) records at the network level, making it a potential threat to Truecaller’s core offerings. Jhunjhunwala views CNAP not as a disruption, but as validation of the underlying issues Truecaller aims to solve.
Advertising Challenges Ahead
Analysts like Bharath Nagaraj from Cantor Fitzgerald suggest that while CNAP may slow user growth, the more pressing challenge is the pressure on Truecaller’s advertising revenue, which constitutes 65%-70% of its income. Truecaller recently cited a one-third decline in ad traffic from a major partner, suspected to be Google, due to an unresolved algorithm issue.
In-App Revenue on the Rise
Despite advertising challenges, Truecaller’s in-app revenue is growing rapidly, skyrocketing from $600,000 in 2017 to $39.3 million in 2025. The app’s monthly revenue from in-app purchases has consistently exceeded $2 million.
Expanding Beyond Android
Truecaller is also focusing on expanding its presence on iOS. Its installs on Apple’s platform have risen from less than 5% of total downloads in 2020 to around 11-12% in recent years. However, Apple’s expanding call-screening features could limit the necessity of third-party solutions for iPhone users.
Truecaller for Business: A Growing Sector
A key component of Truecaller’s monetization strategy is its enterprise platform, Truecaller for Business, which allows companies to verify identities and communicate securely with customers. Revenue from this segment rose by 39% in constant currency in 2025, and the company plans to further expand its offerings to meet enterprise needs.
Addressing Data Privacy Concerns
Truecaller has faced scrutiny regarding its data collection practices, particularly in India. An investigation raised concerns about consent and compliance with data protection laws, which have historically been lax. While Truecaller denies any wrongdoing, this issue underscores the delicate balance between utility and user privacy.
Looking Ahead
Despite the challenges in the landscape and a shifting user base, Truecaller retains confidence in its future growth. The company is committed to tackling the increasing complexity of communication, particularly as spam and scams evolve. Jhunjhunwala envisions expanding across all revenue streams, including advertising, enterprise services, and premium subscriptions, as they aim to maintain growth in a competitive environment.
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