Influencer Marketing sector to reach to ₹5,000 cr by 2027: Kofluence Report
Bengaluru: Kofluence, a leading Ad-Tech influencer marketing platform, released its Decoding Influence: Annual Research Report 2026. The report complied data from over 2 million creators, 1,000+ surveys and in-depth interviews with leading creators in the industry.
According to the report, the influencer marketing sector is currently valued at ₹3,000-3,500 crores and is projected to reach up to ₹4,500-₹5,000 crore by 2027, with a staggering 22% CAGR. This comes at a time when the creator economy has become a crucial part of marketing initiatives, boosting deep brand integration, creator professionalization and the institutionalization of influencer marketing initiatives.
“With 15% of India’s active creator base now registered as formal business entities, and brands linking influencer marketing directly to revenue targets, influence is no longer a soft channel. India is not following global best practices in creator commerce — it is writing them,” Sreeram Reddy Vanga, CEO and Co-Founder, Kofluence said in a press release.
Internet Infrastructure driving growth
With India having crossed 900 million internet users, Tier 2, 3 and 4 cities have become the operational core for the creator economy. Over 62% of creators are now working in regional languages, with the average cost of campaigns varying based on location.
| Metric | Metro | Tier 2 | Tier 3/4 |
| Avg. Engagement Rate | 3% – 4% | 3.5% – 4.5% | 4.5% – 5.5% |
| Avg. Cost per Campaign | ₹3.8L – ₹4.5L | ₹1.3L – ₹1.6L | ₹35K – ₹90K |
Source: Kofluence ARR 2026 Platform Data | BCG India Consumer Markets Report
Influencer marketing as a core marketing function
Today, almost 13.3% of brands directly link influencer marketing spend to formal revenue targets, with a further 46.4% using performance accountability on a campaign-by-campaign basis. 62% of brand professionals now say that long term creator partnerships deliver better ROI than one-off campaigns. In fact, almost 93.1% of brands prioritize Instagram as their primary influencer channel, with e-commerce leading at 23% and FMCG coming close at 19%.
Regulation formalising the industry
Under the Digital Personal Data Protection (DPDP) Act, the goverment is already cracking down on misuse of influnece, even as the ASCI has updated its disclosure mandates for the same. Though there have been cases of misuse of influnce in the finance sector, brands and creators are actively meeting accountability through complaince, while balancing it with creativity.
The creator economy has become one of the biggest success stories for India, as it has helped millions to showcase their creativity, talent and expertise to those eager to listen. Moving ahead, the creator economy is expected to become one of the leading sources of livelihood for everyone- from teenagers studying in international schools in Noida to aspiring footballers in the Northeast.
<p>The post Influencer Marketing sector to reach to ₹5,000 cr by 2027: Kofluence Report first appeared on Hello Entrepreneurs.</p>
