Xiaomi Preinstalled PhonePe App Store to Increase Adoption in India as Fintech Firm Takes on Google

Xiaomi, the Chinese smartphone manufacturer, says the Android phone it will be selling in India will be preinstalled with the PhonePe app store, TechCrunch has reported. Xiaomi phones are often preinstalled with GetApps, the company’s app store and the Google Play Store.

Xiaomi preinstalled PhonePe app comes following a multi-year partnership deal that the smartphone maker signed with the fintech company last year. In the Xiaomi PhonePe partnership, the two companies agreed to replace the smartphone maker’s GetApps with the Indus App Store.

Big Milestone

Xiaomi devices will still have Google Play Store preinstalled. The smartphone manufacturer did not reveal whether Indus Appstore will be included in current Xiaomi smartphones that are already on sale in India. Even so, integration of the PhonePe’s App Store into Xiaomi smartphones represents a big milestone for the fintech company.

“Our partnership with Xiaomi India marks a significant milestone towards our goal of building a horizontal app store for mobile users and developers. By combining Xiaomi India’s reach with our localised app discovery platform, we’re creating opportunities for developers while delivering a seamless, culturally-relevant experience to users. This partnership is just the beginning of our vision to transform how India discovers and experiences mobile apps,” Indus Appstore Chief Business Officer Priya M Narasimhan said.

Xiaomi also sees the partnership as a strategic step towards promoting Indian innovations.

“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,” Sudhin Mathur, Xiaomi India’s COO said.

Driving Adoption

The Indus App Store has been struggling to scale due to trust issues with users. Convincing them to install a different app store has been a challenge for PhonePe. One way that the company is trying to overcome this challenge and increase user adoption is to have its AppStore preinstalled in new smartphones.

“By integrating Indus Appstore with our ecosystem, we aim to offer users a seamless and enriched app discovery experience, while also supporting Indian developers in reaching a wider audience. This partnership reflects both brands’ unwavering commitment to fostering a robust and inclusive digital ecosystem in India, empowering users and developers alike,” Mathur added.

So far, the fintech company has not shared statistics on how many downloads its Appstore attracted or how much it has earned developers. PhonePe’s growth in India comes at a time when the fintech company is pursuing listing on the Indian stock markets. Indus AppStore currently supports at least 12 Indian languages. The App Store is also home to over 500,000 apps in varied categories and even has a video-led discovery feed.

Market Entry

PhonePe introduced the Indus App Store into the Indian market back in February 2024. The marketplace allows developers to list their apps in English as well as Indian languages. Developers can also upload videos and media to their application listings.

PhonePe has been trying to get a share of India’s app market from search giant Google. The company has previously offered to eliminate fees for in-app purchases in a bid to attract developers. Earlier this year, Indonesia fined Google $12.6 million for violating antitrust rules on its Google Play payment system service.

In November, PhonePe launched a new version of the marketplace that introduced better visuals and user interface improvements. The marketplace also comes with voice-enabled search capabilities, a self-publishing platform, growth monitoring tools, and localized services.