Indian fintech giant PhonePe, backed by Walmart, is preparing to challenge Google's dominance in the Indian app store market with the launch of its own app store for Android users. PhonePe's move into the app store market comes after its acquisition of app store maker IndusOS, which served customers through partnerships with smartphone vendors. The app store will offer hyper-localised services based on customer context, support for 12 languages, 24×7 live chat, and a “premiere experience” for users with high-quality advertisements and custom targeting.
According to a Tech Crunch report, PhonePe believes that consumers are reluctant to download multiple apps on their phones, and the app store is part of its ongoing funding round this year, which has raised $750 million from General Atlantic, Walmart, and Tiger Global, among others. The company confirmed that it's holding multiple conversations with phone makers in India and plans to be live on all Android OEMs within the first few months of launch.
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This move is significant because Google commands 97% of the Indian app store market, and PhonePe's entry into the market could challenge Google's dominance. The timing is also favourable for PhonePe, as a recent order from the Indian antitrust watchdog Competition Commission of India paves the way for other developers to build and launch their app stores on Google Play. PhonePe sees an opportunity to build an alternative app store that is more localised, not just from a language perspective but also from a discovery and consumer interest perspective.
This latest product push follows PhonePe's recent entry into the e-commerce category, and it's another example of the company's ongoing efforts to expand its services beyond mobile payments. As one of India's most valuable fintech startups, PhonePe is well-positioned to challenge Google's dominance in the app store market, and its app store could provide a much-needed alternative for Indian consumers who are looking for more localised services.
