Truecaller faces mounting pressures as its growth matures

Truecaller, a prominent caller identification service with over 500 million users worldwide, is now facing a more difficult landscape as its growth in key markets begins to slow. This slowdown is particularly evident in India, which accounts for approximately 350 million users, or about 70% of Truecaller’s global user base. As the app evolves from merely identifying callers to becoming an integral part of everyday communication, it is now gearing up for its next phase. In response to the shifting dynamics of its market, Truecaller has rolled out new features aimed at enhancing monetization. These include an AI Assistant, Family Protection, and Community Suggestions, all designed to maintain its competitive edge as telecom solutions like Calling Name Presentation (CNAP) and AI-based spam protection gain popularity. Moreover, major smartphone manufacturers such as Apple and Google are embedding caller ID and spam-blocking functionalities directly into their operating systems, intensifying the competition. Recent data reveals a worrying trend for Truecaller; downloads in India have plunged 16% year-over-year in 2025, with global downloads also seeing a 5% decline. This marks a notable downturn after several years of consistent growth. In particular, downloads peaked at 175 million in 2021, only to sharply decline in 2022 and stabilize around 120 million in subsequent years. While India remains Truecaller’s largest market, its share of downloads has dropped from over 70% to the mid-50s, indicating a gradual shift toward user growth in other regions. Investors are closely monitoring this shift in growth dynamics, especially as Truecaller’s stock has plummeted approximately 78% since its IPO in 2021 and is down around 37% this year. Chief Executive Rishit Jhunjhunwala addressed investor concerns, particularly regarding the potential impact of CNAP on user acquisition. He acknowledged challenges in certain aspects of the business but refrained from providing specific details. CNAP, an initiative launched by India’s telecom regulator, allows caller names to be displayed based on KYC records without the need for third-party applications. While this feature overlaps with Truecaller’s offerings, Jhunjhunwala views it not as a threat but as validation of the problem Truecaller aims to solve. He emphasized that Truecaller’s extensive global platform offers a far richer intelligence layer, encompassing spam detection and fraud prevention. Bharath Nagaraj, a director at Cantor Fitzgerald, noted that while CNAP may slow user growth, it is unlikely to disrupt Truecaller’s core business significantly in the immediate future. Instead, he highlighted the pressure in Truecaller’s advertising segment, which has been affected by changes from Google, as the more pressing challenge. With 65% to 70% of Truecaller’s earnings now derived from ad revenue, a recent earnings call revealed that the company lost about one-third of its ad traffic from its largest partner, identified as Google. As part of its strategy to diversify revenue, Truecaller is seeking new advertising partners and building its own ad exchange to reduce reliance on any single platform. However, the competitive nature of the advertising landscape remains a concern, as brands have multiple channels to choose from. Despite these challenges, certain aspects of Truecaller’s business are thriving. Data indicates that while download numbers have stagnated, in-app revenue has surged from $600,000 in 2017 to an impressive $39.3 million in 2025, with $13.4 million already generated this year by April 20. The company’s monthly revenue from in-app purchases consistently exceeds $2 million. Truecaller has also made strides in the iOS market, increasing its share of downloads from less than 5% in 2020-2021 to around 11-12% in recent years. To maintain this momentum, the company has launched features like real-time caller ID for iPhone and continues to update its app to match Android capabilities. However, Apple’s expansion of its call-screening features poses a potential threat to third-party apps like Truecaller. Another key component of Truecaller’s growth strategy is its enterprise service, Truecaller for Business, which allows companies to verify their identities and interact with customers via calls and messages. Revenue from this segment has grown steadily, with a 39% increase reported in 2025. Truecaller is also expanding its consumer subscription model, which now boasts over 4 million paid subscribers, as users seek enhanced features like advanced spam protection and an ad-free experience. Despite facing scrutiny over its data collection practices, particularly in India where data protection laws are less stringent, Truecaller asserts it operates within legal guidelines. Nevertheless, the ongoing debate highlights the challenge of balancing utility, scale, and user privacy. Looking ahead, Truecaller is committed to addressing the complexities of communication as spam and scam calls become increasingly sophisticated due to advancements in AI. The company aims to expand across its three revenue streams—advertising, enterprise services, and premium subscriptions—to sustain growth. However, its future success will largely depend on its ability to adapt as caller identification technologies continue to evolve.