MAM
India’s $14 billion interactive media boom: From micro-dramas to astro-apps
Micro-dramas, gaming, and niche apps are driving India’s interactive media boom.
MUMBAI: It seems India has decided that merely watching content is so last season; the sub-continent is now officially leaning forward, picking up the controller and clicking its way into a new era. While the rest of the world might be hitting the ‘snooze’ button, India’s interactive media market has surged to a staggering $13.8 billion in 2025, posting a robust 17 per cent year-on-year growth.
The secret sauce behind this digital boom isn’t just a love for entertainment; it is also the world’s most aggressive digital infrastructure. With data rates as low as $0.10 to $0.15 per GB and 877 million smartphone users, the barrier to entry has all but vanished. Add to that a UPI payment system that handles 85 per cent of all transaction volumes, scaling nearly six times to 228 billion transactions in 2025, and you have a frictionless ecosystem where discovery turns into a purchase in a heartbeat.
Video remains the heavyweight champion, valued at $5.4 billion and growing at 23 per cent. While traditional OTT platforms provide the foundation with $4.9 billion in revenue, the real “show-stopper” is the rise of micro-dramas. These bite-sized vertical stories, typically 30 seconds to 3 minutes, have exploded from virtually zero to a $300 million market almost overnight.
Despite their brevity, micro-dramas are proving that size doesn’t matter when it comes to engagement. Users now spend around 60 minutes a day on micro-dramas, nearly rivaling OTT’s 78 minutes. On the monetisation front, they command a $15 Annual Revenue Per Paying User (ARPPU), proving that cliffhangers are a lucrative business model. Looking ahead, the segment is projected to skyrocket to $4.5 billion by 2030.
The gaming sector hit $1.5 billion in 2025, maintaining a 17 per cent CAGR despite a significant regulatory curveball. The PROG Act of 2025 effectively banned Real Money Gaming (RMG), causing a 9 per cent dip in the total gamer base to 555 million. However, the “hardcore” crowd stayed put, with weekly time spent averaging 8 hours and payer penetration holding steady at 25 per cent.
Gaming’s punch-above-its-weight status is undeniable. While it accounts for only 8 per cent of downloads among India’s top 25 apps, it generates a massive 36 per cent of the revenue. In-app purchases (IAP) in mid-core games are particularly potent, boasting a $15 ARPPU compared to just $3 for casual titles.
Perhaps the most uniquely Indian trend is the success of high-intent “lean-forward” platforms. Astro-devotion apps have emerged as surprise leaders in monetisation per user, achieving an annual ARPU of $8.4, outperforming even social media. Meanwhile, interactive learning platforms, powered by AI tutors and gamified micro-learning, have carved out a $2.4 ARPU niche, proving that users are willing to pay when content solves a specific problem.
Audio, the category “no one heard coming,” grew 29 per cent to $0.4 billion. Audio series, with their episodic hooks, now drive 31 minutes of daily engagement, significantly higher than music streaming.
India is also moving from “back office” to “front of house” in the $1.6 billion Animation & VFX sector. While 80 per cent of revenue still comes from international exports, domestic IP like Mahavatar Narsimha and The Legend of Hanuman is gaining ground. AI is the new co-director, compressing production timelines by 50 per cent and allowing studios to turn what used to be four weeks of work into just six hours.
With a market at the same inflection point that social media reached in 2010, India isn’t just following the global digital script; it is rewriting it. For investors and creators alike, the message is clear: the game has only just begun.
Brands
Kotak buys Deutsche’s India retail business in Rs 45 billion deal
Preferred bidder moves ahead as German lender pares India exposure
MUMBAI: India’s banking chessboard is shifting fast. Kotak Mahindra Bank is set to snap up Deutsche Bank’s India retail business in a deal pegged at about Rs 45 billion ($480.3 million), according to a report by The Economic Times, citing people familiar with the matter.
Kotak, flagged as the preferred bidder over Federal Bank, could seal the transaction as early as next week, though the final price may still be tweaked at closing. Both Kotak Mahindra Bank and Deutsche Bank did not immediately respond to requests for comment.
The move underscores Deutsche Bank’s steady retreat from select global retail markets as it sharpens focus and cuts exposure. In India, the exit would cover a retail banking network spanning 17 branches, a modest but strategic footprint in a fiercely competitive market.
The deal fits a broader pattern. In 2022, Citi offloaded its India consumer business for more than $1 billion as it pulled back from global retail. Last year, Standard Chartered sold a $488 million personal loan portfolio in India to Kotak Mahindra Bank, reinforcing Kotak’s appetite for bolt on growth.
Numbers tell their own story. Deutsche Bank’s retail banking revenue in India stood at $278.3 million for the financial year ended March 31, 2025, respectable but not enough to justify long term capital in a market dominated by domestic heavyweights and nimble private lenders.
For Kotak, the acquisition is less about scale and more about sharpening its retail edge, customers, cards and cross sell opportunities bundled into one tidy purchase. For Deutsche, it is another clean cut in a global reshaping.
Deals like this rarely shout. They quietly redraw the map.
