PhonePe’s Indus Appstore is set to replace Xiaomi’s GetApps as the default app store on Xiaomi smartphones in India beginning January 2025.
The move marks a major step in PhonePe’s ambitious plans to challenge dominant app marketplaces like Google Play Store and Apple App Store.
According to reports by TechCrunch, Xiaomi smartphone users in India will receive an update notification to transition from GetApps to the Indus Appstore.
The update will also include the Indus Services App, which will continue to provide app installation and support services.
Indus Appstore: A Rising Challenger
PhonePe launched the Indus Appstore in February 2023, targeting a diverse Indian user base with support for 12 regional languages and no app listing fees for developers until March 2025.
The app store now features over 2 lakh apps across 45 categories, including top Indian brands like Zomato, Myntra, Swiggy, and Flipkart.
One of its standout features is the no-commission policy on in-app billing, allowing developers to integrate third-party payment gateways.
This contrasts sharply with the 15%-30% commission charged by Google and Apple’s platforms, positioning Indus Appstore as a developer-friendly alternative.
To enhance accessibility, PhonePe introduced an AI-powered voice search feature in April, supporting 10 Indian languages, including Hindi, Bengali, Tamil, and Kannada.
This innovation aims to provide a seamless experience for users communicating in regional languages.
Strategic Partnerships and Expansion
The app store has already partnered with Nokia and Lava for pre-installation on their devices and is reportedly in advanced discussions with other smartphone manufacturers to expand its reach.
PhonePe acquired the parent company of Indus Appstore in May 2022 for $90 million, a move that reinforced its commitment to creating a homegrown app marketplace.
Xiaomi’s Transition
This collaboration with Xiaomi, a leading smartphone brand in India, represents a significant milestone for Indus Appstore.
Xiaomi’s decision to adopt the platform aligns with growing sentiment among Indian stakeholders to prioritize local solutions.
In a customer notice, Xiaomi assured users that app installation and support would remain uninterrupted under the Indus Services App branding.
Financial Outlook
PhonePe has made significant strides in curbing losses, with its consolidated net loss reducing by 28% to INR 1,996 crore in FY24, compared to INR 2,795 crore in the previous fiscal year.
The company’s diversification into app store services complements its fintech offerings and underscores its broader aspirations to dominate the digital ecosystem in India.
As PhonePe gears up for this transition, its Indus Appstore is poised to emerge as a formidable competitor in India’s app marketplace, reshaping the dynamics of the sector and offering developers and users a more localized and cost-effective alternative.
