Truecaller slashes 70 roles as ad revenue plummets amid India gaming downturn
Net sales dropped 27 per cent in Q1 2026, driven by regulatory bans on real-money gaming in India and algorithm shifts by advertising partners, though subscription revenue climbed.
Truecaller has announced plans to reduce its workforce by 70 employees, representing approximately 15 per cent of its staff, as the company seeks to address a significant downturn in its financial performance. The decision follows the release of Q1 2026 results which revealed a 27 per cent fall in net sales to 362 million SEK. The reduction is scheduled for implementation during the second quarter of 2026.
The primary driver of the financial strain was a sharp 44 per cent decline in advertising revenues. Chief Executive Rishit Jhunjhunwala attributed this slump to a combination of factors, including reduced activity in the real-money gaming sector in India and algorithmic changes by advertising partners. The company also cited geopolitical conflict in the Middle East as a contributor to lower revenues from that region.
The impact in India, Truecaller's largest market, was particularly severe, with net sales dipping by 41 per cent year-on-year. This contraction coincides with a regulatory shutdown in August 2026 that banned prominent real-money gaming applications such as Dream 11 and MPL. Industry estimates suggest the sector was valued at approximately $23 billion, and its removal deprived advertising platforms of substantial income. Additionally, the company faces increased competition from telecom-led Calling Name Presentation services, which contributed to a five per cent year-on-year decline in app downloads last year.
Despite the contraction in advertising, the firm reported a positive shift in its subscription segment, which rose by 27 per cent. This growth brought subscription revenue to 31 per cent of net sales, driven by new features such as an AI Assistant and Family Protection. The company also confirmed it has surpassed 500 million active users, a key milestone achieved even as it navigates these financial challenges.
The volatility in the company's market valuation remains a concern for investors, with shares having dipped by over 26 per cent this year and falling more than 79 per cent over the trailing 12 months prior to the recent recovery. While the stock has shown some resilience following the Q1 results, the structural changes in its revenue streams and competitive landscape in India suggest a complex path forward.
