Chinese smartphone maker Xiaomi said on Thursday that its Android smartphones sold in India will come pre-installed with Indian fintech firm PhonePe's app store. Xiaomi's Android smartphones often come pre-installed with Google's Play Store and the Chinese company's own GetApps.
Xiaomi said it has signed a multi-year agreement with PhonePe to replace GetApps with the latter's IndusAppstore.
After this, Xiaomi devices will still come pre-installed with the Google Play app store. The companies did not say whether the Indus Appstore will also be rolled out to existing Xiaomi devices that have been sold or are currently available at retailers. They also did not mention when it would take effect.
PhonePe has been trying to compete with the likes of Google for a share of the Indian app market and has promised to zero-charge developers for in-app purchases. IndusAppstore supports 12 Indian languages, has a video-led discovery feed, and has over 500,000 apps across different categories.
However, other app stores have found it difficult to scale because it takes time to build trust with users and convince users to install another app store. PhonePe is trying to overcome at least one of these hurdles by pre-installing its app store on new smartphones. So far, the fintech company has not released any data on how many downloads and revenue its app store generates for developers.
"As India's digital ecosystem continues to evolve, the need for a locally driven app marketplace has never been more urgent." Xiaomi India COO Sudhin Mathur said in a statement: "At Xiaomi India, we have always advocated 'Made in India' innovation and this partnership with Indus Appstore is a strategic step in this direction."