Beginning in January, Xiaomi will transition its app store offerings in India to incorporate fintech giant PhonePe’s solution, a significant development for both the Indian startup and for Xiaomi as it realigns its strategies in one of its most important international markets outside China.
As the second largest smartphone vendor in India, following Vivo, Xiaomi will initiate an automatic update for customers that will replace its existing GetApps platform with PhonePe’s innovative Indus AppStore. This transition was communicated to customers over the preceding weekend, marking a new chapter in Xiaomi’s service delivery approach.
“The GetApps team will continue providing app installation and support services under the name Indus Services App,” stated a customer notice seen by TechCrunch, reflecting a commitment to maintaining service quality amid the change.
Having launched in February this year, PhonePe aims to disrupt Google’s longstanding monopoly in India’s app ecosystem, where Google Play has dominated due to the vast number of Android users. The Indus AppStore not only presents a competitive alternative but also positions PhonePe alongside other players like Vivo, which offers both its own V-Appstore and Google Play as options for users.
In response to mounting criticism from numerous businesses across India regarding Google’s perceived ‘excessive’ fees — which can be as high as 30% on app transactions — the Indus AppStore attempts to tackle these grievances head-on. Many developers have lamented the restrictive nature of Google’s Play Store, particularly its disallowance of third-party in-app payment systems.
The Indus AppStore from PhonePe is designed to alleviate some of these concerns by introducing several user-friendly features, including a no-listing fee for the first year, integration with various third-party payment providers, and support for multiple local languages to cater to a diverse user base.
Xiaomi and PhonePe didn’t immediately respond to a request for comment, leaving many eager to understand the full implications of this strategic collaboration.
What are the key benefits of Xiaomi’s transition to PhonePe’s Indus AppStore for Indian consumers?
**Interview with Rajesh Kumar, Head of Xiaomi India Operations**
**Editor:** Thank you for joining us today, Rajesh. Xiaomi’s recent announcement about transitioning to PhonePe’s Indus AppStore in India is pretty significant. Could you tell us a bit more about why this change is happening and what it means for Xiaomi in the Indian market?
**Rajesh Kumar:** Thank you for having me. This transition is part of our strategic realignment in one of our most critical international markets. By partnering with PhonePe, we’re not just enhancing our app store offerings; we’re also integrating fintech capabilities that resonate with the needs of Indian consumers. This collaboration offers a more localized and efficient platform for app discovery and transactions, which we believe will greatly enhance user experience.
**Editor:** That makes sense. As the second largest smartphone vendor in India, how do you anticipate this move will impact your customer base?
**Rajesh Kumar:** We see this as an opportunity to deepen our relationship with our customers. The automatic update to PhonePe’s Indus AppStore means that our users will have access to a broader range of apps and services, all integrated with PhonePe’s secure payment solutions. We expect this will not only retain our current user base but also attract new customers who are looking for a one-stop solution for their digital needs.
**Editor:** There has been a trend of integrating fintech solutions in technology platforms lately. How does Xiaomi plan to stay competitive with this integration?
**Rajesh Kumar:** Staying competitive means being agile and responsive to market trends. Our partnership with PhonePe positions us at the forefront of this fintech integration wave. We are committed to providing seamless experiences for our users, and by leveraging PhonePe’s expertise, we can ensure that our app ecosystem is robust, secure, and user-friendly.
**Editor:** Lastly, when can customers expect to see this transition take place, and what steps should they anticipate?
**Rajesh Kumar:** The transition will begin in January, and users will receive an automatic update that replaces the existing GetApps platform with the Indus AppStore. We’re committed to ensuring a smooth transition, and our team will provide guidance and support throughout the process to make it as seamless as possible for our customers.
**Editor:** Thank you for sharing these insights, Rajesh. It sounds like an exciting time for Xiaomi in India.
**Rajesh Kumar:** Thank you! We’re looking forward to this new chapter and the opportunities it brings.