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Truecaller to cut 15% workforce after revenue and profit decline
09 May 2026

Truecaller, the Sweden-based caller ID company, has announced plans to lay off 70 employees or about 15% of its workforce.

The decision comes after the company's Q1 2026 results showed a decline in revenue and profits.

The drop is attributed to factors such as India's ban on real-money gaming, changes in advertising partner algorithms, and unrest in the Middle East.

Downloads declined by 5% YoY last year
Market challenges

Truecaller is also facing stiff competition from India's telecom-led solutions, such as the Calling Name Presentation (CNAP) identification service.

The company's downloads also witnessed a 5% year-on-year (YoY) decline last year.

In Q1 2026, Truecaller's net sales fell by 27% to SEK 362 million ($39.34 million).

In India, its biggest market, net sales fell by a whopping 41% YoY, with ad revenues declining by 44%.

Unrest in Middle East affected revenues
CEO's statement

Truecaller CEO Rishit Jhunjhunwala explained the revenue decline during an earnings call.

He said, "The year-on-year comparison looks especially weak given that Q1 and Q2 last year included a large contribution coming from the real money gaming sector in India in connection with the IPL season that takes place around this time."

He also noted that unrest in the Middle East impacted revenues from that region.

Ban on real-money gaming apps impacted Truecaller's revenue
Regulatory impact

India's ban on real-money gaming apps like Dream 11 and MPL, which allowed users to play fantasy sports with money, has also impacted Truecaller's revenue.

The company said that platforms where these real-money apps were advertised lost out on that revenue due to the ban.

This further contributed to the decline in ad revenues for Truecaller.

Changes in Google algorithms also affected ad revenues
Algorithm changes

Truecaller also blamed a decline in ad revenues on changes made by a programmatic partner, which an analyst identified as Google, to its algorithms.

Despite these challenges, the company did see some positives this quarter. It crossed the milestone of 500 million active users, and its subscription revenue grew by 27%, accounting for nearly one-third of total sales.

Truecaller is focusing on its paid features to drive engagement
Strategic shift

To keep users engaged amid rising competition from telecom companies, Truecaller is focusing on its paid features. These include the AI Assistant and Family Protection services.

The company hopes these additions will make its subscription offerings more appealing to users.

Despite the challenges, Truecaller's stock has seen some recovery after the Q1 results were announced.