PhonePe has launched the Indus AppStore Developer Platform, aiming to attract Android developers in India by offering a platform with zero fees and no commissions on in-app purchases. The Bengaluru-based startup, which boasts over 450 million registered users on its payments app, is encouraging developers to register and upload their apps on this “made-in-India” platform. Collaborating with phone manufacturers for distribution, the app store includes numerous locally relevant features, such as support for third-party payment providers, 12 Indian languages, and a phone number-based login system.
PhonePe has announced that it will not impose any listing fees for developers during the first year, but will introduce a “nominal” cost afterward. Additionally, the startup will not charge any commissions on in-app purchases, unlike Google’s 15-30% fee structure. PhonePe, a leader in India’s UPI-based payments market, has established a local support team to address the concerns of local developers dissatisfied with Google’s delayed responses and U.S. timezone operating hours.
PhonePe’s plan to launch the app store was initially slated for April. The fintech company, which has secured $850 million in recent funding rounds and acquired IndusOS in 2021 (following a legal battle to finalize the startup acquisition), has been diligently developing the app store for several years. Internally, PhonePe views this venture as a pivotal strategic move, as noted by individuals familiar with the matter.
The debut of the Indus Appstore Developer Platform coincides with a period during which numerous Indian enterprises and startups have become increasingly disenchanted with Google.
This discontent stems from the fact that Google’s Android mobile operating system dominates more than 95% of the smartphone market in India. Despite the vast market size, Indian app developers have long been constrained to collaborate with a sole app store for app distribution. This is an issue that Akash Dongre, co-founder and chief product officer of Indus Appstore, highlighted in a statement. He also noted that while Apple is gradually expanding its presence in India, its market share in the country remains relatively modest.
He reiterated the aim of the Indus Appstore, stating that their goal is to offer app developers a reliable alternative to the Google Play Store. This alternative focuses on localization, improved app discovery, and enhanced consumer engagement. PhonePe’s endeavor is part of a broader movement by local entrepreneurs seeking to challenge the perceived high fees enforced by the Google Play Store. In recent years, numerous Indian businesses have sought intervention from New Delhi, and some have placed their hopes on a mini app store alliance led by Paytm.
PhonePe, backed by Walmart and formerly part of Flipkart, holds optimism in the wake of India’s regulatory efforts to compel Google to accept third-party app stores and features tailored to local requirements, including real-time analytics, comprehensive industry trend insights, and competitor evaluations. India remains a crucial overseas market for Google, which has invested over $10 billion in the past decade to expand its presence beyond the U.S. While Google serves more than 700 million internet users in the South Asian market, it has encountered mounting criticism and regulatory scrutiny within the nation.
Google faced the consequences of its actions in India, receiving two antitrust fines just a year ago. As a result, it had to revise its business agreements with phone manufacturers and other partners. Google’s compliance with these changes followed its earlier warning that altering its business terms would result in device price hikes in the world’s second-largest smartphone market. It also highlighted the potential risks posed by unchecked apps to individual and national security.
The app store represents the most recent addition to PhonePe’s strategic expansion into various sectors. This fintech startup, valued at $12 billion, introduced an e-commerce app earlier this year and recently introduced Share. Market. This innovative app enables users to create trading accounts and invest in a range of financial instruments, including stocks, mutual funds, and ETFs.
