Xiaomi has entered into a strategic pact with PhonePe to pre-load the Indus Appstore on all new Xiaomi phones for sale in India. The move is pursuant to a multi-year deal that will have the Indus Appstore replace Xiaomi’s existing app store, GetApps, not only on new phones but also on existing available phones. The Google Play Store will continue to be available on Xiaomi phones.
PhonePe launched Indus Appstore in February 2024, which acts as a threat to Google Play Store and Apple App Store. The appstore features some one-of-a-kind characteristics such as compatibility with 12 Indian languages, a video-based discovery feed, and more than 500,000 apps under various genres. One significant distinction is that Indus Appstore doesn’t charge platform fees from developers for in-app purchases, unlike Google and Apple, which charge between 15% and 30%. Developers also use any payment gateway of their choice in their apps.
This alliance has been viewed as an important development to counter Google’s monopoly in India’s app industry. PhonePe hopes to benefit from the wide market penetration of Xiaomi in India to spur adoption of the Indus Appstore. Xiaomi has shipped more than 250 million smartphones in India since 2014 when it entered and has plans to double this in a decade.
Xiaomi India Chief Operating Officer Sudhin Mathur identified the growing necessity for a domestically sourced app marketplace as India’s digital economy develops. He continued that having the Indus Appstore be a part of its ecosystem aids Xiaomi’s “Make for India” innovations in providing users with an enhanced and smooth app discovery experience and local developers.
Indus Appstore Chief Business Officer Priya M Narasimhan highlighted the collaboration as a major milestone towards creating an end-to-end app store for Indian consumers and developers. The collaboration will open up opportunities to developers by offering a culturally relevant experience to consumers.
PhonePe’s action follows as the company gears up for its initial public offering (IPO). The fintech giant has been expanding its services beyond payments, such as local commerce, online trading, insurance, and loans. PhonePe’s tie-up with Xiaomi is part of PhonePe’s larger strategy to diversify its services and consolidate its position in the Indian digital space.
The introduction of the Indus Appstore on Xiaomi smartphones is expected to enhance app discovery and availability among Indian consumers. It is also in keeping with the companies’ aim to build a localized digital ecosystem, enabling users to get access to mobile apps that are suitable for their culture and language. The capabilities of the Indus Appstore, such as multilingual support and video-first experience, are designed to provide a more personalized and interactive app discovery experience for users.
