Indian app economy: The market is not showing any signs of slowing down

With the exception of beauty and personal care apps, the Indian app economy showed no signs of slowing down in March 2023, according to a report released on Tuesday. The growth of Reliance Industries Limited’s (RIL) apps for quick delivery groceries, fashion e-commerce, and video streaming was fueled by sales and events like the Women’s Premier League (WPL).

“While IPL started on March 31, JioCinema did see a surge before that, mainly led by watching of women’s IPL. We expect April month to show a sharp rise in the MAU/DAU of JioCinema led by free IPL (Indian Premier League) streaming on its platform,” Bank of America said in a report.

Reliance’s JioCinema is the front runner in the growth of the Indian app economy especially since the growth of IPL.

The number of monthly active users (MAU) on JioCinema reached 57 million, returning to peak levels seen during the FIFA World Cup finals in December 2022. Daily active users (DAU) also increased month over month to 5 million, though they are still far below the 7.7 million DAU peak reached in December of last year.

Indian app economy has experienced significant imprvements since the IPL started in April. Mobile network connections and devices can stream the domestic T20 tournament for no charge.

After the conclusion of the well-liked reality series Bigg Boss, MAU and DAU metrics for Voot, Viacom18’s second OTT app, which also houses JioCinema, continued to decline. Through a partnership with Viacom, RIL owns a portion of Viacom18.

“Ajio witnessed a steep increase in downloads and user metrics driven by its All-Star sale featuring four celebrities launched in Mar’23,” analysts from BofA added.

The result was a growth of 22% and 26% month over month in AJIO’s monthly active users (MAUs) and daily active users (DAUs). While AJIO’s app downloads increased as a result of the sale activity, Myntra maintained its lead in terms of metrics like MAU, DAU, and user retention, which also boosted the Indian app economy.

With 16 million monthly active users and 1.7 million daily active users, JioMart was the market leader in the eGrocery category. The user metrics for Blinkit, formerly known as Grofers, improved, resulting in a closer margin with Zepto, the player in second place.

User metrics also improved in other industries like e-commerce, real estate, job searching, and matrimonial apps. The only category that experienced some slowdown in the Indian app economy was personal care and cosmetics. Market leader Nykaa experienced a 5% month-over-month decline in MAU and a 13% decline in DAU.

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