The data reimbursed by Gigato can be spent by smartphone users on any application or website. The app is available for pre-paid consumers on Android devices across all operators and networks.
The Silicon Valley-based mobile startup is founded by Shailesh Nalawadi, a former Google official and Raina Kumra, who has worked with the US Federal Reserve.
Explaining the new app Nalawadi said: "Gigato is focused on bringing down the cost of data in emerging markets such as India by allowing app developers to sponsor the data for their end users."
"We are targeting only prepaid smartphone users in India because they have to pay high prices for mobile data... Our aim is to create a mobile Internet for these users where they no longer have to ration data," Kumra said.
At present, there is a USD 2.5 billion opportunity to provide connectivity to smartphones that have data disabled.
On company's plan, Nalawadi said "after the success in India, we will target other emerging markets.