Truecaller is under increasing pressure as growth begins to slow

Truecaller, one of the most widely used caller identification services globally with more than 500 million users, is entering a more challenging phase as its growth slows in key markets and competition intensifies across telecom networks and smartphone ecosystems.

A significant portion of Truecaller’s expansion has been driven by India, which accounts for more than 350 million users — roughly 70% of its global base. The widespread issue of spam and unwanted calls has helped transform the platform from a simple caller ID tool into a core part of everyday communication for many users.

That position is now shaping the company’s next stage. Truecaller has introduced features such as AI Assistant and Family Protection to support monetisation efforts, as well as tools like Community Suggestions to remain competitive. These developments come as telecom-driven solutions gain traction in India, including Calling Name Presentation (CNAP), dedicated number ranges for verified business calls, and AI-based spam detection at the network level. At the same time, smartphone manufacturers such as Apple and Google continue to integrate caller identification and spam-blocking features directly into their operating systems.

As competition grows, signs of slowing momentum are becoming evident. Data from Sensor Tower indicates that downloads in India declined by 16% year over year in 2025, while global downloads dropped by 5%, reversing a multi-year growth trend. Separate figures from Appfigures show that downloads peaked at 175 million in 2021, fell significantly in 2022, and have since stabilised at around 120 million annually.

India remains the platform’s largest market, though its share of total downloads has decreased from more than 70% at its peak to the mid-50% range in recent years. This suggests a gradual shift in new user growth toward other regions.

The company’s changing growth profile has drawn increased scrutiny from investors. Truecaller’s shares have declined by about 78% since its 2021 initial public offering and are down roughly 37% this year, reflecting concerns around its long-term growth prospects and revenue model. Chief Executive Officer Rishit Jhunjhunwala noted that investors have raised questions about the potential impact of CNAP in India, while also acknowledging broader headwinds affecting parts of the business.

Advertising pressure outweighs CNAP concerns.

CNAP, introduced by India’s telecom regulator and implemented by network operators, displays caller identity at the network level using KYC-based data without requiring third-party apps. While this overlaps with some of Truecaller’s functionality, its capabilities remain more limited.

Jhunjhunwala stated that the company does not view CNAP as a threat but rather as validation of the underlying problem Truecaller addresses. He emphasised that Truecaller offers a broader and more dynamic intelligence layer, including spam detection, fraud prevention, business identity verification, and contextual information across calls and messages.

Analysts suggest that CNAP may slow user acquisition but is unlikely to significantly disrupt the company’s core operations in the near term. Instead, more immediate pressure is being felt in Truecaller’s advertising business, which accounts for approximately 65% to 70% of total revenue.

Recent performance has been affected by changes from major partners, including Google. During its latest earnings call, the company disclosed that it lost about one-third of advertising traffic from its largest partner in August 2025 due to what it described as an unresolved algorithm-related issue. Chief Financial Officer Odd Bolin noted that this partner still contributes more than a third of overall revenue. In response, Truecaller is expanding its network of partners and developing its own advertising exchange to reduce reliance on a single platform.

However, competition in digital advertising remains intense, with brands able to allocate budgets across multiple platforms. This dynamic presents ongoing challenges for maintaining stable ad revenue.

Growth continues in in-app and enterprise segments.

While advertising faces pressure, other areas of the business are showing growth. Appfigures data indicates that gross in-app revenue has increased significantly, rising from $600,000 in 2017 to $39.3 million in 2025, and reaching $13.4 million so far this year as of April. Monthly in-app purchase revenue now consistently exceeds $2 million and continues to grow.

Truecaller’s presence on iOS has also expanded, increasing from less than 5% of total downloads in 2020–2021 to approximately 11% to 12% in recent years. The company has strengthened its focus on Apple’s platform, including launching real-time caller identification for iPhones in early 2025 and introducing updates to achieve feature parity with its Android offering. However, Apple’s own enhancements to call-screening functionality could reduce reliance on third-party apps among iPhone users.

Another important area of growth is Truecaller for Business, which enables enterprises to verify their identity and engage with customers through calls and messaging. This segment has been expanding steadily, with revenue increasing by 39% in constant currency in 2025. Jhunjhunwala said the company is continuing to scale this offering globally, opening chat services to partners and providing tools such as verified business caller ID to improve customer communication.

At the same time, the company is growing its subscription business, which now includes more than 4 million paying users worldwide. These subscribers gain access to features such as enhanced spam protection, AI-powered call screening, and an ad-free experience.

Truecaller has also faced scrutiny over its data practices in the past. Investigations have raised questions about how the company collects and maintains its extensive database of phone identities, particularly in markets where data protection regulations have historically been less strict. The company has denied any wrongdoing and maintains that it complies with applicable laws, but the discussion highlights ongoing concerns around privacy, scale, and data usage.

Despite these challenges, Truecaller continues to see expansion opportunities. The company is focusing on addressing increasingly complex communication environments, in which spam and scam calls are becoming more sophisticated as AI advances. It aims to grow across its three primary revenue streams—advertising, enterprise services, and subscriptions—while sustaining momentum. The company’s future trajectory will likely depend on how effectively it adapts as caller identification shifts away from standalone applications toward telecom networks and integrated smartphone features.