On February 21, 2024, PhonePe, a digital payments company owned by Walmart, launched the Indus Appstore, a new Android-based mobile application store in India. The Indus Appstore is designed to compete with Google’s Play Store, which dominates the Indian app market. The launch comes amid an ongoing dispute between Google and some of India’s leading startups and internet firms over the Play Store’s policies and commission fees.

#IndusAppstore– Made in India, Made for you.
Get AI Driven personalised recommendations based on who you are, your location and many more. #IndiaKaAppstore pic.twitter.com/sLJ2VAbH9K
— Indus Appstore (@IndusAppstore) February 21, 2024

The Indus Appstore claims to offer a localized, personalized, and efficient platform for Indian consumers and developers. It supports 12 Indian languages, offers video-led discovery, AI-driven recommendations, and OTP-based login. It also waives fees on in-app purchases, presenting a fee-free model for developers. The store hosts over 200,000 apps and games across 45 categories, including several popular Indian apps such as Paytm, Zomato, Ola, and Flipkart.

In this article, we will explore the background, features, and implications of the Indus Appstore launch. We will also compare it with the Google Play Store and other existing or emerging app stores in India. We will also analyze how the Indus Appstore is less Indian and more US, and what are the challenges and opportunities for both the Indian and the global app ecosystem.

Background

India is the world’s second-largest smartphone market, with over 800 million active users. It is also the top market in terms of app downloads, with over 24 billion downloads in 2023, according to data.ai. However, India ranks low in terms of app spending, with only $520 million spent on in-app purchases on the Play Store apps in 2023, as per Sensor Tower. This indicates a huge potential for growth in the Indian app economy, which is expected to reach $19 billion by 2025, according to a report by Omidyar Network India and Boston Consulting Group.

The Google Play Store is the dominant app store in India, with over 95% market share, according to Counterpoint Research. The Play Store offers over 3 million apps and games, and charges a 15% commission fee on in-app purchases for most apps, and a 30% fee for some categories such as gaming. The Play Store also enforces its own policies and guidelines for app developers, such as prohibiting apps that facilitate sports betting, gambling, or pornography.

However, the Play Store has faced criticism and backlash from some of India’s top startups and internet firms, who accuse Google of abusing its market power, imposing unfair terms, and stifling innovation. In September 2020, Google temporarily removed Paytm, India’s largest fintech app, from the Play Store, citing that it violated its policy on sports betting apps. This sparked a controversy and led to the formation of the Mini App Store Coalition, a group of over 150 Indian startups and internet firms, who demanded a national app store and a regulatory framework for app stores in India.

In response to the growing discontent, Google announced some concessions and clarifications for Indian app developers, such as reducing its commission fee from 30% to 15% for apps earning less than $1 million per year, allowing alternative payment methods with a 4% discount, and extending the deadline for compliance with its billing system till March 31, 2024. However, these measures were not enough to appease the Indian app developers, who continued to challenge Google’s policies and fees in courts and regulators. In January 2024, the Competition Commission of India (CCI) ordered an investigation into Google’s alleged anti-competitive practices in the app store market, and directed Google to allow all apps to use alternative billing systems and payment processors.

Meanwhile, several Indian companies and organizations have launched or announced their own app stores, such as Paytm’s Mini App Store, Jio’s JioMart, and the government’s Mobile Seva Appstore. These app stores aim to provide a more localized, affordable, and diverse platform for Indian app developers and consumers, and to reduce the dependence on foreign app stores. However, none of these app stores have been able to match the scale, reach, and quality of the Google Play Store, and have faced challenges such as low adoption, fragmentation, and security issues.

Features

The Indus Appstore is the latest entrant in the Indian app store market, and claims to be the first truly Indian app store. The Indus Appstore is based on the technology of Indus OS, a homegrown Android-based operating system that PhonePe acquired in 2021.

"Discovery of apps which are local and made for India; there is a huge market for that."- @neerajroy, Founder & CEO, Hungama, at #IndusAppstore launch.#IndiaKaAppstore pic.twitter.com/BMx6D8el3n
— Indus Appstore (@IndusAppstore) February 21, 2024

Indus OS was founded in 2015, and had over 10 million users and 400,000 apps on its platform, before it was acquired by PhonePe. Indus OS also had partnerships with several Indian smartphone brands, such as Micromax, Intex, and Karbonn, to pre-install its OS and app store on their devices.

The Indus Appstore offers the following features for Indian consumers and developers:

Multi-language support: The Indus Appstore supports 12 Indian languages, namely Hindi, Bengali, Gujarati, Kannada, Malayalam, Marathi, Odia, Punjabi, Tamil, Telugu, Urdu, and English. Users can switch between languages with a simple toggle, and browse the same set of apps that will get translated in real time. The Indus Appstore also supports search in multiple languages, and provides voice input and output for some languages.
Video-led discovery: The Indus Appstore also supports video-led discovery, where app developers can create and upload video trailers for their apps, to showcase their features and benefits. Users can watch these videos before downloading the apps, and get a better understanding of the app’s functionality and value proposition. The Indus Appstore also leverages AI to provide personalized and relevant video recommendations for users, based on their preferences and behavior.
AI-driven recommendations: The Indus Appstore also enables AI-driven recommendations, where the app store analyzes the user’s profile, location, device, and usage patterns, and suggests apps and games that suit their needs and interests. The Indus Appstore also provides location-based recommendations, where it shows apps and games that are popular or relevant in the user’s vicinity, such as local news, events, deals, and services.
Storage management: The Indus Appstore also aims to help users manage storage on their devices, especially for low-end or entry-level smartphones that have limited memory and space. The Indus Appstore monitors the user’s app usage data, and recommends which apps they can put to sleep, delete, or move to SD card, to free up space and improve performance. The Indus Appstore also allows users to download lightweight or progressive web apps, that run on the browser and do not require installation or storage.
OTP-based login: Unlike other app stores that require an email address or a phone number to sign in, the Indus Appstore supports OTP-based login, where users can simply enter their phone number and receive a one-time password to access the app store. This makes the login process faster, simpler, and more secure, and also enables users to sync their app data across devices.

Implications

The launch of the Indus Appstore has several implications for the Indian and the global app ecosystem, such as:

Competition: The Indus Appstore poses a direct challenge to the Google Play Store, and aims to capture a significant share of the Indian app market. The Indus Appstore offers several advantages over the Google Play Store, such as multi-language support, video-led discovery, AI-driven recommendations, storage management, and OTP-based login. The Indus Appstore also offers a fee-free model for developers, where it does not charge any commission or listing fees for in-app purchases, unlike the Google Play Store that charges 15% to 30% fees. The Indus Appstore also claims to have a faster and easier app approval process, and a more flexible and transparent policy framework, than the Google Play Store. The Indus Appstore also leverages PhonePe’s existing user base of over 300 million, and its integration with other popular apps such as Flipkart, Ola, and Zomato, to drive adoption and engagement. The Indus Appstore also competes with other existing or emerging app stores in India, such as Paytm’s Mini App Store, Jio’s JioMart, and the government’s Mobile Seva Appstore. The Indus Appstore differentiates itself from these app stores by offering a more comprehensive, diverse, and quality app portfolio, and by providing a more user-friendly and developer-friendly platform.
Innovation: The Indus Appstore also fosters innovation and diversity in the Indian app ecosystem, by providing a platform for Indian app developers and consumers to showcase and discover new and local apps and games. The Indus Appstore supports apps and games in 12 Indian languages, and caters to the linguistic and cultural preferences of Indian users. The Indus Appstore also encourages app developers to create and upload video trailers for their apps, to enhance their visibility and appeal. The Indus Appstore also leverages AI to provide personalized and relevant app recommendations for users, based on their profile, location, device, and usage patterns. The Indus Appstore also enables users to manage their storage and download lightweight or progressive web apps, to optimize their device performance and user experience.
Regulation: The Indus Appstore also influences the regulation and governance of the app store market in India, by providing an alternative and viable option to the foreign app stores, such as the Google Play Store and the Apple App Store. The Indus Appstore aligns with the government’s vision of promoting a self-reliant and digital India, and supports the Make in India apps.

Analysis

In this section, we will analyze how the Indus Appstore is less Indian and more US, and what are the challenges and opportunities for both the Indian and the global app ecosystem.

How the Indus Appstore is less Indian and more US

The Indus Appstore claims to be the first truly Indian app store, and aims to cater to the needs and preferences of Indian consumers and developers. However, the Indus Appstore is also influenced by the US, in terms of its ownership, technology, and strategy. Here are some of the ways the Indus Appstore is less Indian and more US:

Ownership: The Indus Appstore is owned by PhonePe, which is a subsidiary of Walmart, the US-based retail giant. Walmart acquired a 77% stake in Flipkart, India’s largest e-commerce company, in 2018, for $16 billion. Flipkart owns PhonePe, which was founded in 2015, and became one of India’s leading digital payments platforms, with over 300 million users and 15 million merchants. In 2021, PhonePe acquired Indus OS, the homegrown Android-based operating system, for an undisclosed amount, and rebranded it as the Indus Appstore. Thus, the Indus Appstore is ultimately controlled by Walmart, a US corporation, which has a significant say in its vision, strategy, and operations.
Technology: The Indus Appstore is based on the technology of Indus OS, which is an Android-based operating system. Android is an open-source operating system developed by Google, a US-based tech giant. Android powers over 85% of the smartphones in the world, and over 95% of the smartphones in India, according to StatCounter. Android also provides the core services and functionalities for the Indus Appstore, such as app distribution, security, updates, and compatibility. Thus, the Indus Appstore is dependent on Android, a US-based technology, for its performance and functionality.
Strategy: The Indus Appstore is also influenced by the US, in terms of its strategy and positioning. The Indus Appstore is designed to compete with the Google Play Store, which is the dominant app store in India, and the world. The Indus Appstore offers several features and benefits that are similar or superior to the Google Play Store, such as multi-language support, video-led discovery, AI-driven recommendations, storage management, and OTP-based login. The Indus Appstore also offers a fee-free model for developers, where it does not charge any commission or listing fees for in-app purchases, unlike the Google Play Store that charges 15% to 30% fees. The Indus Appstore also claims to have a faster and easier app approval process, and a more flexible and transparent policy framework, than the Google Play Store. Thus, the Indus Appstore is following a strategy of differentiation and disruption, which is often adopted by US-based startups and internet firms, to challenge the incumbents and create new markets.

Challenges and opportunities for the Indian and the global app ecosystem

The launch of the Indus Appstore also creates challenges and opportunities for the Indian and the global app ecosystem, such as:

Challenges:
- Adoption: One of the main challenges for the Indus Appstore is to gain adoption and traction among the Indian consumers and developers, who are already accustomed to the Google Play Store, and other existing or emerging app stores in India. The Indus Appstore will have to convince the users and developers of its value proposition, and overcome the network effects and switching costs that favor the incumbents. The Indus Appstore will also have to deal with the fragmentation and diversity of the Indian app market, which has different segments, preferences, and behaviors, across regions, languages, and income levels.
- Quality: Another challenge for the Indus Appstore is to ensure the quality and security of the apps and games on its platform, and to prevent the spread of malicious, fraudulent, or harmful apps and content. The Indus Appstore will have to balance its app approval process, and its policy framework, between being fast and easy, and being rigorous and strict. The Indus Appstore will also have to monitor and moderate the user reviews, ratings, and feedback, and to address the complaints and issues raised by the users and developers.
- Regulation: A third challenge for the Indus Appstore is to comply with the regulation and governance of the app store market in India, and to deal with the legal and regulatory risks and uncertainties that may arise. The Indus Appstore will have to follow the laws and rules of the Indian government, and the regulators, such as the CCI, the Ministry of Electronics and Information Technology (MeitY), and the Reserve Bank of India (RBI), that oversee the app store market, and the digital payments sector. The Indus Appstore will also have to face the potential scrutiny and investigation from the authorities, and the litigation and arbitration from the competitors or the stakeholders, over its policies, practices, and conduct.
Opportunities:
- Growth: One of the main opportunities for the Indus Appstore is to tap into the growth and potential of the Indian app economy, which is expected to reach $19 billion by 2025, according to a report by Omidyar Network India and Boston Consulting Group. The Indus Appstore can leverage its features and benefits, such as multi-language support, video-led discovery, AI-driven recommendations, storage management, and OTP-based login, to attract and retain the Indian consumers and developers, and to increase their app usage, engagement, and spending. The Indus Appstore can also leverage PhonePe’s existing user base of over 300 million, and its integration with other popular apps such as Flipkart, Ola, and Zomato, to drive adoption and engagement.
- Innovation: Another opportunity for the Indus Appstore is to foster innovation and diversity in the Indian app ecosystem, by providing a platform for Indian app developers and consumers to showcase and discover new and local apps and games. The Indus Appstore can support and promote the app developers, especially the small and medium enterprises (SMEs), the startups, and the independent developers, who create and offer apps and games in 12 Indian languages, and cater to the linguistic and cultural preferences of Indian users. The Indus Appstore can also encourage app developers to create and upload video trailers for their apps, to enhance their visibility and appeal. The Indus Appstore can also leverage AI to provide personalized and relevant app recommendations for users, based on their profile, location, device, and usage patterns. The Indus Appstore can also enable users to manage their storage and download lightweight or progressive web apps, to optimize their device performance and user experience.
- Influence: A third opportunity for the Indus Appstore is to influence the regulation and governance of the app store market in India, and to shape the future of the app ecosystem, by providing an alternative and viable option to the foreign app stores, such as the Google Play Store and the Apple App Store. The Indus Appstore can align with the government’s vision of promoting a self-reliant and digital India, and support the Make in India, Digital India, and Startup India initiatives, that aim to boost the domestic production, innovation, and entrepreneurship in the digital sector. The Indus Appstore can also collaborate and cooperate with the other Indian app stores, such as Paytm’s Mini App Store, Jio’s JioMart, and the government’s Mobile Seva Appstore, to create a unified and integrated platform for the Indian app ecosystem. The Indus Appstore can also contribute to the global app ecosystem, by offering a unique and diverse app portfolio, and by sharing its best practices and learnings, with the other app stores and markets in the world.

Conclusion

The Indus Appstore is a new Android-based mobile application store launched by PhonePe, a digital payments company owned by Walmart, in India. The Indus Appstore is designed to compete with Google’s Play Store, which dominates the Indian app market.

The Indus Appstore offers several features and benefits for Indian consumers and developers, such as multi-language support, video-led discovery, AI-driven recommendations, storage management, and OTP-based login. The Indus Appstore also offers a fee-free model for developers, where it does not charge any commission or listing fees for in-app purchases.

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The Indus Appstore claims to be the first truly Indian app store, and aims to cater to the needs and preferences of Indian consumers and developers. However, the Indus Appstore is also influenced by the US, in terms of its ownership, technology, and strategy. The Indus Appstore is owned by PhonePe, which is a subsidiary of Walmart, a US-based retail giant. The Indus Appstore is based on the technology of Indus OS.