WhatsApp Business surges in India, but limitations pose challenges

WhatsApp Business is becoming an indispensable tool for India’s digital economy, with active business users rising from 10 million in 2022 to over 15 million by the end of 2024. Daily interactions on the platform have reached nearly 175 million, driven largely by MSMEs, the fastest-growing user segment, which rely on WhatsApp to manage orders, collect payments, and connect with customers efficiently.

Sandhya Devanathan, VP & Head of India & SE Asia at Meta, said, “The journey has been about listening to what users and businesses want. A Kantar survey published recently showed that 91% of online adults in India talk to a business on WhatsApp, so the trend is strong. We’ve taken those insights to build rich, localised experiences.”

WhatsApp is not only supporting businesses but also governments and institutions. Devanathan highlighted, “Metro ticketing, for instance. What started as a pilot project in Bengaluru a few years ago is now expanding to other states. They're now at nearly 7 million tickets sold every month — and a run rate of 100 million annually. WhatsApp launched Mana Mitra with the Andhra government, offering 700 citizen services through a WhatsApp chatbot. Four million people have already begun using it. And before the 12th standard board exams last year, 91% of hall tickets were distributed on WhatsApp.”

On the payments front, WhatsApp Pay is gradually making inroads into India’s digital payments market. After the lifting of the 100 million user cap in December 2024, monthly UPI transactions doubled to 61 million by January 2025. Yet, its share of UPI volumes remains below 0.4%, far behind dominant players PhonePe and Google Pay, which together account for more than 85% of transactions.

Despite rapid adoption, WhatsApp Business faces limitations as companies scale. Issues include broadcast messaging capped at 256 contacts per list, restricted multi-agent workflows, and limited native automation. Concerns also exist about cloud storage outside India, which may not meet enterprise-grade audit trails or compliance requirements under the Digital Personal Data Protection Act — a significant challenge for regulated sectors like finance and healthcare.

WhatsApp is actively addressing these challenges, but experts caution that it must move quickly as rivals such as Telegram, Gupshup, and the newly launched Zoho Arattai intensify competition in India’s business messaging space.Read about our editorial guidelines and ethics policy