Kunal Shah, Founder of CRED took to X, formerly Twitter, to highlight how India primarily serves as a farm for monthly active user (MAU) for international giants like Meta.
What Happened: Shah tweeted a comparison between the number of Meta’s monthly active users from India versus the revenue generated from the country.
The numbers show that Meta had 410 million MAUs in India versus 231 in the US. However, revenue from India came in at $1.8 billion (₹15,000 crore) while the US contributed $40.7 billion (3.4 lakh crore).
The statement underscores the notion that while India contributes significantly to the user base of many global platforms, it doesn’t necessarily translate to proportional revenue generation. In other words, while these markets bring in a large number of users, they do not generate as much average revenue per user (ARPU) as more developed markets.
Why It Matters: India, with its vast population and increasing internet penetration, offers a massive user base for global tech companies. However, the revenue generated per user in India is often lower than in more developed markets like the US. This disparity can be attributed to various factors, including purchasing power, digital infrastructure, and market maturity.
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Shah’s observation brings to the forefront a critical discussion about the value derived from emerging markets by global tech giants. While these markets provide significant user growth, the challenge lies in effectively monetizing these users.
India is the biggest market by users for Meta platforms like Facebook and Instagram, and the firm has previously said the country is the most significant market for all its new products and features.
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