PhonePe, an Indian fintech giant backed by Walmart, is gearing up to launch a dedicated Android app store in India, challenging Google's market dominance. This new app store aims to provide a localized and user-centric experience for India's massive mobile payment market.
Through its app store, PhonePe will focus on offering hyper-local services based upon customer context. According to an internal company document obtained by TechCrunch, the firm's primary goal is to support developers with high-quality user acquisition via multilingual solutions. The app store's launch is still several weeks away but follows PhonePe's recent acquisition of IndusOS, an app store creator that has previously collaborated with smartphone vendors.
As the most valuable Indian fintech startup, PhonePe competes fiercely with Google's Google Pay in India. By entering the app store market, the company plans to bolster its ties with smartphone vendors like Xiaomi. An insider knowledgeable about the matter shared this information on the condition of anonymity.
PhonePe has confirmed that its app store will offer a premium, tailored experience for millions of users, featuring high-quality advertisements, custom targeting, support for 12 languages, and 24/7 live chat.
In response to TechCrunch, a company spokesperson acknowledged that Google controls 97% of the app store market in India. They believe that PhonePe, with over 450 million registered users in the country, has the potential to develop a more localized alternative app store. The spokesperson stated that this app store would be distinguished by its emphasis on language, user discovery, and interest.
Additionally, PhonePe highlighted the positive timing of their new endeavor, citing the recent ruling by the Indian antitrust watchdog, Competition Commission of India. This decision permits other developers to create and launch their app stores on Google Play. While a tribunal court has since provided some respite to Google, the situation remains favorable for PhonePe.
PhonePe confirmed that it is currently in discussions with multiple phonemakers and said that they have been met with warm reception, thanks in part to the Competition Commission of India's clarification that Google cannot engage in anti-competitive practices. The fintech firm revealed that all Original Equipment Manufacturers (OEMs) are anticipating the development of a localized app store specifically for the Indian market. PhonePe expects that its app store will be live on all Android OEM devices within the first few months of the launch. The company has reportedly already finalized negotiations with one of the largest OEMs and is working to onboard others rapidly over the next couple of months.
Besides challenging Google's dominance in India with the launch of its new app store, PhonePe recently ventured into the e-commerce sector as well. The startup went its separate ways from its parent firm, Flipkart, last year. Furthermore, platforms like AppMaster.io, a powerful no-code tool for building backend, web, and mobile applications, could potentially contribute to India's thriving app ecosystem.
