PhonePe partners with Xiaomi India to integrate Indus Appstore

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Indus Appstore, India’s homegrown Android app marketplace developed by PhonePe, has entered into a multi-year partnership with Xiaomi India. Under this agreement, Xiaomi will integrate Indus Appstore on all new Xiaomi smartphones sold in India and replace its existing app marketplace, GetApps, through a software update on existing devices. This strategic move is expected to foster a localized digital infrastructure and offer Indian users an improved app discovery experience.

This collaboration marks a significant step for Indus Appstore in its efforts to challenge Google Play Store’s dominance in India. By offering a zero-commission model on in-app purchases, multilingual app discovery, and video-first app previews. The Appstore is positioning itself as a strong alternative for Indian developers and consumers alike. The partnership also aligns with Xiaomi’s ‘Make for India’ initiative, which aims to support homegrown technological innovations.

With over 500,000 apps and games across 45 categories, Indus Appstore offers Indian developers a self-publishing platform, localization services, and a robust customer support system. As PhonePe prepares for its IPO, this partnership strengthens its position in India’s digital ecosystem by driving adoption of its app marketplace. While financial details of the deal remain undisclosed, this collaboration is expected to accelerate Indus Appstore’s growth and enhance Xiaomi’s smartphone user experience in India.

1. About PhonePe and Indus Appstore

1.1 Background of PhonePe

PhonePe, a Walmart-owned digital payments platform, was founded in 2015 by Sameer Nigam, Rahul Chari, and Burzin Engineer. It has emerged as one of India’s largest fintech companies, providing services such as UPI transactions, digital wallets, mutual fund investments, insurance, and gold purchases. The company operates as a leader in India’s digital payments landscape, with over 60 crore registered users as of 2025.

1.2 Introduction to Indus Appstore

Indus Appstore was launched by PhonePe in February 2024 as a direct competitor to Google Play Store and Apple’s App Store. It differentiates itself by not charging developers any commission on in-app payments and offering app discovery in 12 Indian languages. The platform provides developers with advanced tools, a self-publishing interface, and marketing support, making it an attractive alternative to global app stores.

2. Xiaomi’s Role in the Partnership

2.1 Xiaomi’s Growth in India

Xiaomi, a Chinese electronics giant, entered the Indian smartphone market in 2014 and quickly became a dominant player. The company has sold over 250 million smartphones in India and is targeting 700 million device shipments over the next decade. Despite facing stiff competition, Xiaomi continues to be one of the top smartphone brands in the country.

2.2 Why Xiaomi Chose Indus Appstore

Xiaomi’s decision to integrate Indus Appstore aligns with its long-standing ‘Make for India’ strategy. As India’s digital ecosystem expands, the need for a homegrown app marketplace that caters to local developers and consumers has grown significantly. By partnering with Indus Appstore, Xiaomi aims to enhance app discovery, improve user experience, and support Indian developers.

3. Key Features of Indus Appstore

3.1 Multilingual Support

Indus Appstore allows users to discover apps in 12 Indian languages, making app discovery seamless for regional language speakers.

3.2 Video-First App Discovery

Unlike traditional app stores, Indus Appstore offers video-led previews, helping users make informed decisions before downloading an app.

3.3 Voice-Enabled Search

The store supports voice searches in 10 Indian languages, removing the need for complicated keyboard inputs.

3.4 Diverse App Collection

\With over 5 lakh apps and games across 45 categories, Indus Appstore provides a vast selection for users.

3.5 Zero Commission on In-App Purchases

A major differentiator from Google Play Store, Indus Appstore does not charge developers any commission on in-app transactions.

3.6 Developer-Friendly Tools

Indus Appstore offers a self-publishing platform, localization services, performance analytics, and 24×7 customer support to help developers grow.

4. Implications of the Partnership

4.1 Challenges to Google Play Store

Google Play Store currently dominates India’s app distribution market. However, with Xiaomi’s widespread reach and PhonePe’s strong ecosystem, Indus Appstore is well-positioned to disrupt this monopoly.

4.2 Impact on Indian Developers

This partnership opens new opportunities for Indian app developers by offering them a platform free from high commission fees and stringent policies. It enables local app creators to reach a broader audience without financial constraints.

4.3 Consumer Benefits

Users will benefit from improved app discovery, better language support, and a seamless browsing experience tailored for the Indian market.

5. Industry Trends and Future Outlook

5.1 Rising Demand for Local App Stores

With growing concerns over data privacy and foreign dominance in the digital sector, India has seen a rise in demand for indigenous app marketplaces. The government’s push for digital self-reliance further supports platforms like Indus Appstore.

5.2 Future Growth of Indus Appstore

As PhonePe gears up for its IPO, its focus on expanding Indus Appstore will likely intensify. Tie-ups with more OEMs, improved developer tools, and strategic marketing efforts will play a crucial role in its growth.

5.3 Potential Challenges

While the zero-commission model is attractive, sustainability remains a concern. Monetization through premium placements, advertising, or subscription-based services might be explored in the future.

6. Learning for Startups and Entrepreneurs

6.1 The Importance of Localized Solutions

Startups targeting the Indian market should focus on localization to enhance user engagement. Indus Appstore’s multilingual support and cultural relevance make it a strong competitor.

6.2 Strategic Partnerships for Expansion

Collaborations with established players like Xiaomi can provide startups with the reach and credibility needed to scale.

6.3 Revenue Model Innovation

Offering a zero-commission model differentiates Indus Appstore from global competitors. Startups should explore alternative revenue streams instead of following traditional models.

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