Xiaomi will transition its Indian app store to fintech company PhonePe’s Indus AppStore starting January 2024. The update will automatically replace Xiaomi’s GetApps store on devices across India, signaling a significant partnership for the Chinese tech giant in its largest market outside China.
Customers were informed of the upcoming changes through a weekend notice, which highlighted that Xiaomi’s GetApps team will continue providing support under the name Indus Services App. This shift marks a strategic recalibration for Xiaomi, which has shipped over 250 million smartphones and an additional 100 million devices in India since launching operations in 2013. Despite its early success, the company has faced challenges in recent years, including reduced market share amid geopolitical tensions and a 2022 financial services exit following legal troubles.
For PhonePe, backed by Walmart, General Atlantic, and Tiger Global, this collaboration represents a significant boost for its Indus AppStore, launched earlier this year to compete with Google Play. Targeting concerns over Google’s high fees and limitations on third-party payments, PhonePe offers unique advantages such as no listing fees for the first year, support for local languages, and third-party payment providers.
The partnership also places Xiaomi alongside Vivo, which offers an alternative to Google Play through its V-Appstore. As more companies challenge Google’s dominance in India, PhonePe’s move underscores a growing trend of localizing offerings to cater to Indian businesses and consumers.
This collaboration positions PhonePe to expand its app store ecosystem while giving Xiaomi an opportunity to refine its customer experience in one of its most critical global markets.
Featured image courtesy of Fortune India
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