Chinese smartphone manufacturer Xiaomi has now announced a new partnership with Flipkart-owned Indian digital payments app PhonePe. Several months after initial reports on the matter surfaced, it has been confirmed that the multi-year partnership between the two will now bring PhonePe’s domestic Indus Android app marketplace to Xiaomi’s smartphones in India. It is set to replace Xiaomi’s in-house GetApps store, as well as provide an alternative to Google Play Store.
Indus Appstore, developed by PhonePe, was launched in February 2024 as an Android-based alternative to the Play Store. Unlike Google’s platform, Indus Appstore does not charge developers a commission on in-app purchases, which means that app creators get to retain all of their earnings. Additionally, developers using Indus Appstore have the flexibility to integrate any payment gateway of their choice, rather than being restricted to Google’s billing system. Currently, the app marketplace supports 12 Indian languages, in addition to English, to remove linguistic barriers for regional language speakers. The store features a video-driven app discovery system as well, which allows users to preview apps before downloading them. Other key features include voice-enabled search (in 10 local languages) and developer support tools to assist app creators in managing and growing their applications.
Priya M Narasimhan, Chief Business Officer of Indus Appstore, described the partnership with Xiaomi as a major step toward expanding the app marketplace’s reach. “By combining Xiaomi India’s reach with our localised app discovery platform, we’re creating opportunities for developers while delivering a seamless, culturally relevant experience to users. This partnership is just the beginning of our vision to transform how India discovers and experiences mobile apps,” he said. The agreement is expected to give Indus Appstore an expanded user base, helping it compete against Google’s Play Store, which makes up a dominant chunk of the online app marketplace in India.
Speaking of Xiaomi, the Chinese smartphone major has been a dominant player in India’s mobile phone market and has frequently localized its services to cater to Indian consumers. Sudhin Mathur, COO at Xiaomi India, announced in an official statement, “As India’s digital ecosystem continues to grow, the demand for a locally driven app marketplace has never been more critical. At Xiaomi India, we have always championed ‘Make for India’ innovations, and this partnership with Indus Appstore is a strategic step in that direction.”
By preinstalling Indus Appstore on all new Xiaomi smartphones, the company is offering Indian users an alternative to Google Play, while also giving local developers greater visibility and monetization opportunities. This move could also help Xiaomi reduce its reliance on Google’s ecosystem. Still, competing with Google Play Store will be a significant challenge for Indus Appstore. Google’s app marketplace is deeply integrated with Android’s operating system, offering features such as Google Play Protect, automatic updates, and a wide range of developer tools.