Xiaomi Strikes Groundbreaking Deal with PhonePe to Preinstall Indus Appstore on Android Phones in India

Xiaomi Brings Indus Appstore to Its Smartphones in India

Chinese smartphone giant Xiaomi has announced a multi-year partnership with Indian fintech company PhonePe to integrate the Indus Appstore into its Android smartphones sold in India. This move replaces Xiaomi’s in-house GetApps store with PhonePe’s Indus Appstore, providing users with a locally developed alternative to Google Play Store.

The company confirmed this partnership on Thursday, solidifying earlier reports about the deal. With this move, Xiaomi aims to support India’s digital ecosystem while giving PhonePe an opportunity to establish a stronger foothold in the competitive app marketplace.

What This Means for Xiaomi Users?

Xiaomi users in India will now find the Indus Appstore preinstalled on new devices instead of Xiaomi’s own GetApps. However, Google’s Play Store will remain on the smartphones, ensuring users continue to have access to the extensive library of apps available on the global platform.

The companies have not specified whether existing Xiaomi smartphones will receive Indus Appstore through a software update or if the change applies only to newly launched devices. Additionally, they have not disclosed when the transition will officially begin.

PhonePe’s Strategy to Compete with Google Play Store

PhonePe has been making strides in the Indian app market by positioning the Indus Appstore as a strong alternative to Google Play Store. The app store currently supports 12 Indian languages, features a video-led discovery feed, and boasts a collection of over 500,000 apps across multiple categories.

One of its biggest selling points is the zero commission model for in-app purchases. Unlike Google, which charges developers a percentage for transactions, PhonePe aims to attract developers by ensuring they retain 100% of their revenue. Despite this, the fintech company has not yet shared any figures indicating its success in terms of downloads or earnings for developers.

The Challenges of Alternative App Stores

Although alternative app stores present benefits such as localized content and reduced commissions, they often struggle to gain widespread adoption. Many users are reluctant to install multiple app stores due to security concerns and the habit of relying on familiar platforms like Google Play Store.

By securing a deal with Xiaomi, PhonePe has overcome one of the key barriers to entry. Since Indus Appstore will come preinstalled on Xiaomi smartphones, users will be more likely to explore the platform instead of having to download and install it manually. This partnership gives PhonePe a competitive edge and an opportunity to establish trust with Indian users.

Xiaomi’s Commitment to ‘Make for India’ Initiatives

Xiaomi has consistently focused on localizing its offerings to better align with Indian consumers. The company’s Chief Operating Officer, Sudhin

Mathur, emphasized this strategic approach, stating that the partnership with PhonePe is a step toward strengthening India’s digital ecosystem.

“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,” Mathur said.

What Lies Ahead for the Indian App Market?

The Indian app market has been witnessing rapid growth, with consumers increasingly looking for platforms that cater specifically to their needs. The entry of PhonePe’s Indus Appstore as a preinstalled feature on Xiaomi smartphones could accelerate the adoption of local app marketplaces.

However, success will depend on how well the app store engages users and developers. While the zero-commission model is an attractive proposition, the true test lies in user experience, security, and the availability of high-quality apps. If PhonePe manages to attract top-tier developers and provide seamless usability, it could emerge as a formidable challenger to Google’s Play Store in India.

With this collaboration, Xiaomi and PhonePe are reshaping the digital landscape, offering Indian consumers more choice and developers a new platform to reach a vast audience.

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