In a bold move to compete with industry giants, PhonePe, owned by Walmart, is gearing up to launch its mobile app store, Indus Appstore, on February 21. This development intensifies the competition with Google Play Store, with Indus Appstore aiming to provide a homegrown alternative to cater to the unique preferences of the Indian ecosystem.
Indus Appstore: A Challenger to Google Play Store
The upcoming launch follows PhonePe’s strategic move in October 2023, when it opened its app marketplace to Android developers, inviting them to publish their apps on the platform. Since then, Indus Appstore has onboarded notable apps, including Flipkart, ixigo, Domino’s Pizza, Snapdeal, JioMart, and Bajaj Finserv. The app store has also formed partnerships with real-money game developers like Dream11, Nazara Technologies, Gameskraft, and Mobile Premier League (MPL).
One distinguishing feature of Indus Appstore is its support for 12 Indian languages, allowing developers to list their apps in regional languages. The platform emphasizes a zero percent fee on in-app purchases, a stark contrast to the 15-30 percent fees charged by Google Play Store and Apple App Store. Furthermore, the app listings on the platform were initially offered for free for the first year, with a “nominal” annual fee introduced thereafter.
Indus Appstore aims to address common developer pain points by providing 24×7 dedicated India-based support through email or chatbot, dedicated account managers, and the flexibility for developers to integrate their preferred payment gateway.
Consumer-Centric Approach and Market Dynamics:
PhonePe has collaborated with original equipment manufacturers (OEMs) such as Nokia and Lava to integrate the app store into their devices. Consumers can access the app through the Indus Appstore website and enjoy a “localised, contextual, and personalised” experience. The platform offers a mobile number-based login system to cater to users without email accounts.
This strategic move by PhonePe comes amid regulatory scrutiny of Google Play’s business practices in India. Google has faced challenges from local developers over commission fees, leading to modifications in its policies, including reduced commission fees and the introduction of third-party billing for in-app purchases.
As PhonePe’s Indus Appstore enters the arena, the Indian app distribution landscape is poised for increased competition and potential shifts in market dynamics.
