India shopping app growth exposes retention weakness

India's shopping-app market is growing rapidly, with Android installs increasing by 85% in India compared to just 2% globally between Q3 2024 and Q2 2026, according to AppsFlyer's report. India accounts for 63% of Android shopping installs and 71% of sessions across the measured markets. However, the expansion in installs is not accompanied by strong customer retention.

Day-30 retention on Android fell by 41% between Q4 2025 and Q2 2026, a steeper decline than the global 30% drop. Retention had remained steady at around 4% through 2025 before weakening over the following two quarters. Marketing spend shifted accordingly, with remarketing expenditure in India dropping 42% between Q4 2025 and Q2 2026 while user-acquisition spending rose by 10%.

Consequently, Android remarketing conversions fell by 62% in Q2 2026, indicating businesses are investing more in acquiring new users while spending less on re-engaging existing customers. Paid installs surpassed organic installs in absolute volume by Q1 2026, reversing the organic-led trend that dominated most of 2025. AppsFlyer's India and ANZ general manager, Sanjay Trisal, attributes India's exceptional install numbers to the growth of quick commerce, a key driver of mobile-led commerce in the country.

While install volumes have cooled slightly since their festive-season peak, India's lead in mobile shopping remains substantial. Android installs were 22% below their third-quarter 2025 peak by Q2 2026, with session declines of only 5%. On iOS, session numbers increased by 13% over the same period, suggesting that established users continue to use shopping apps even as new-install momentum slows.

The festive surge, particularly in Android installs, fueled the rapid growth. Android shopping installs surged 136% year-on-year during the Navratri quarter, and organic installs rose by 143%. Despite signs of weaker retention, acquisition remains attractive to marketers due to the growth of quick commerce. Redseer Strategy Consultants estimates the segment's gross merchandise value reached $13 billion to $14 billion by the end of 2025-26, representing about 17% of India's online retail market.

Quick commerce has expanded beyond groceries to include beauty, personal care, electronics, and fashion, adding more shopping occasions through apps. However, India generates its high Android activity with a smaller share of advertising expenditure. It accounts for 19% of global Android user-acquisition spend among measured markets, despite contributing to 63% of installs and 71% of sessions.

On iOS, India's share of installs is 16%, but it only accounts for 2% of user-acquisition expenditure. Traffic quality has improved over the longer measurement period, with India's Android install-fraud rate dropping from 10% in Q3 2024 to 3% in Q2 2026, compared to a global rate of 7%. The iOS fraud rate is 1%, slightly higher than the global rate of 3%, although Android fraud increased quarter-on-quarter in the latest period.