Truecaller’s New Battle: Slowing Growth, Rising Ads Issues and a Shift to Premium

Truecaller, once the king of caller‑ID in India with 350 million users, is now facing a tough phase. The app’s popularity grew fast because people wanted to know who was calling and block spam, but that demand is slowing. In 2025, new downloads in India dropped 16 % from the previous year and worldwide numbers fell 5 %. The app’s biggest market has also lost share, falling from more than 70 % of all users to the mid‑50s. The company is reacting by adding new tools that aim to make money in different ways. An AI assistant, a family‑protection feature and community suggestions are all meant to keep users engaged while giving the business new ways to earn. These moves come as telecom operators in India roll out a system called Calling Name Presentation (CNAP). CNAP shows caller names directly from the network, so people no longer need a third‑party app for basic identification. Truecaller says CNAP is not a threat but proof that the problem it solves still exists. Investors, however, worry about revenue. About 70 % of Truecaller’s earnings come from advertising, and a recent loss of roughly one‑third of traffic from Google—its biggest ad partner—has hurt the bottom line. The company is trying to reduce this reliance by building its own ad exchange and adding new partners, but the competition for online ads is fierce. Brands can run campaigns on many platforms, so Truecaller must offer more value to keep advertisers.

Despite the advertising headwinds, in‑app sales are climbing. The revenue from purchases inside the app has jumped from $600 000 in 2017 to over $39 million in 2025, and monthly sales now exceed $2 million. Truecaller is also expanding its presence on iOS, where it now accounts for about 11 % of downloads and has introduced real‑time caller ID for iPhones. Apple’s own call‑screening features could reduce the need for third‑party apps, adding another layer of competition. Another revenue stream is Truecaller for Business, which lets companies verify their identity and reach customers via calls or messaging. That segment grew 39 % in constant currency last year, and the company is opening chat services to partners worldwide. A subscription service with premium spam protection and an ad‑free experience has also grown, boasting over 4 million paid users. Privacy concerns have followed the app for years. A report raised questions about how phone data is collected in India, but Truecaller insists it follows all relevant laws. The debate highlights the challenge of balancing useful services with user privacy. Truecaller’s future hinges on its ability to adapt as caller identification moves from standalone apps to built‑in network and phone features. If it can grow its advertising, enterprise, and subscription businesses fast enough, it may still thrive; if not, the company could struggle to stay relevant.

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