Xiaomi, the Chinese smartphone giant, has announced a strategic collaboration with PhonePe, India’s prominent fintech company, to preinstall PhonePe’s Indus Appstore on all of its Android smartphones sold in India. This move signifies a major shift in Xiaomi’s app ecosystem, replacing the company’s own GetApps store with PhonePe’s app store in a multi-year deal, confirmed Thursday.
Although Xiaomi’s smartphones will continue to come preloaded with Google’s Play Store, the switch to the Indus Appstore, which is part of Xiaomi’s ongoing efforts to localize its offerings for Indian users, marks a significant change. The two companies have not disclosed whether this change will extend to existing Xiaomi devices already in circulation or if there will be a timeline for its implementation.
PhonePe is eager to compete with industry leaders like Google and has focused on providing a locally-driven app marketplace. The Indus Appstore boasts a diverse range of over 500,000 apps across various categories and supports 12 regional languages. One of the key features of the app store is its promise of zero fees for developers on in-app purchases, a unique value proposition that could help it capture market share in the competitive Indian app space.Xiaomi Makes Bold Move to Preinstall PhonePe’s Indus Appstore on Smartphones, Revolutionizing India’s Digital Marketplace 2025
For PhonePe, this partnership with Xiaomi represents a crucial opportunity to expand the app store’s reach and scale in a country with a rapidly growing digital ecosystem. Xiaomi’s vast presence in the Indian market, with millions of devices sold annually, will provide the Indus Appstore with the exposure it needs to challenge incumbents like Google Play Store.
However, despite the promising start, alternative app stores in India have faced challenges in establishing user trust and encouraging the adoption of a new marketplace. PhonePe hopes that by preinstalling its app store on new Xiaomi devices, it can mitigate these challenges and accelerate growth in both user downloads and developer participation.
Sudhin Mathur, COO of Xiaomi India, expressed the company’s excitement about the partnership, stating, “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.”
This partnership is not just about Xiaomi’s market reach but also aligns with PhonePe’s broader ambition to create an inclusive and user-friendly ecosystem for Indian app developers, taking a step forward in the country’s rapidly growing digital marketplace.
Why This is a Big Deal
This strategic collaboration comes after months of speculation and signals Xiaomi’s commitment to enhancing its offerings for the Indian market. Previously, Xiaomi’s Android smartphones came with the Google Play Store and its own GetApps store preinstalled. Now, under this new deal, GetApps will be replaced with the Indus Appstore, which is owned by Indian fintech giant PhonePe.
The Impact on Indian Consumers:
- Localized Experience: Indus Appstore supports 12 Indian languages, providing users with an app store that’s more in tune with their local language preferences. This localization is a key move to attract a diverse customer base in India’s vast market.
- Better Deals for Developers: PhonePe has been vocal about charging zero fees on in-app purchases, making it an appealing option for developers who are often burdened by high fees on other platforms. This move is expected to encourage more Indian developers to list their apps on the Indus Appstore, boosting the variety of apps available to users.
- Video-Led Discovery Feed: The Indus Appstore will feature a video-led discovery feed, making app browsing more engaging and user-friendly. This feature may encourage more users to explore new apps and discover content they wouldn’t typically come across.
The Battle with Google Play Store
PhonePe’s ambitious move to challenge the Google Play Store for a bigger share of the Indian app market comes at a time when the country’s digital ecosystem is growing at an exponential rate. Although alternative app stores have faced challenges in gaining user trust and market traction, Xiaomi’s endorsement of the Indus Appstore could be a game-changer. By preinstalling it on smartphones, Xiaomi is essentially ensuring that millions of new users will be exposed to the app store from day one, which is a major advantage over its competitors.
Xiaomi’s Commitment to ‘Make for India’ Innovation
Xiaomi’s Chief Operating Officer, Sudhin Mathur, emphasized that this partnership aligns with the company’s philosophy of “Make for India” innovations, which focuses on delivering locally relevant solutions to Indian consumers. As India’s digital ecosystem continues to expand, having a homegrown app store like Indus Appstore is seen as a critical step toward providing a more customized experience for Indian users.
Will This Move Work for Xiaomi and PhonePe?
The success of this collaboration hinges on a few factors. First, Xiaomi needs to ensure the smooth integration of the Indus Appstore on its devices while maintaining its established relationship with Google Play Store. The company must also navigate the challenges of scaling PhonePe’s app store, especially in convincing users to embrace an alternative to the widely trusted Google Play Store.
For PhonePe, this is an opportunity to capture a large portion of the app market and potentially disrupt the status quo. But it will need to focus on building trust and ensuring a steady stream of quality apps and services to keep users engaged.
What’s Next for the Indus Appstore?
Though specific details regarding the rollout timeline are yet to be disclosed, the partnership will likely be a significant turning point for both companies. It’s expected that this move will pave the way for further advancements and features in the app marketplace, and perhaps encourage other smartphone manufacturers to follow suit.
With India’s smartphone market being one of the largest in the world, Xiaomi’s partnership with PhonePe could prove to be a smart, forward-thinking strategy in a country that is at the forefront of digital growth.
As we move further into 2025, this partnership may set the stage for further innovation in India’s app ecosystem, helping users discover and enjoy a wider array of locally developed apps while giving developers an alternative route to reach a vast consumer base.
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