On Saturday, PhonePe introduced the Indus AppStore Developer Platform, aiming to attract Android developers in Google’s largest market. This Walmart-backed fintech company, headquartered in Bengaluru, boasts over 450 million registered users on its payment app. The platform offers a zero platform fee and does not charge commissions on in-app purchases.
Starting today, developers can begin registering and uploading their apps on this ‘made-in-India’ app store, which also benefits from partnerships with phone manufacturers for distribution. The app store incorporates numerous locally relevant features, including support for third-party payment providers, support for 12 Indian languages, and a phone number-based login system.
For the first year, PhonePe will not impose any listing fees on developers, but afterward, they plan to introduce a “nominal” cost. Unlike Google’s 15-30% commission on in-app purchases, PhonePe will not levy any commission on such transactions. To address the concerns of local developers dissatisfied with Google’s delayed responses and U.S. timezone operating hours, PhonePe has established an India-based support team.
PhonePe had previously revealed its plans to launch this app store in April. With $850 million in recent funding and the acquisition of IndusOS in 2021, PhonePe considers this move a vital strategic step.
The launch of the Indus Appstore Developer Platform comes at a time when many Indian businesses and startups are growing frustrated with Google, which dominates over 95% of the smartphone market in the country. Despite the market’s size, Indian app developers have been constrained to work exclusively with one app store for app distribution.
Akash Dongre, co-founder and chief product officer of Indus Appstore, stated that “Indus Appstore hopes to provide app developers a credible alternative to the Google Playstore—one that is more localized and offers better app discovery and consumer engagement.”
PhonePe is not the first local initiative to challenge Google Play Store’s perceived exorbitant fees. Several Indian businesses have sought intervention from the government, and some have formed alliances, such as the Paytm-led mini app store alliance.
PhonePe is optimistic that regulatory pressure will compel Google to accept third-party app stores and features tailored to local needs, including real-time analytics, industry trend insights, and competitor evaluations.
India is a critical overseas market for Google, having invested over $10 billion in the past decade. However, it has faced criticism and regulatory intervention, including antitrust fines and changes to business agreements with phonemakers.
For PhonePe, the app store is the latest addition to its expansion efforts. The fintech startup, valued at $12 billion, recently launched an e-commerce app and unveiled Share.Market, an app for trading stocks, mutual funds, and ETFs.
