PhonePe to Acquire Indus OS: India App Store Deal

PhonePe in Talks to Acquire Indus OS

PhonePe, the Indian payments company supported by Walmart, is reportedly nearing an agreement to purchase Indus OS. This startup, which receives backing from Samsung, manages a third-party Android application store under the same name.

Deal Valuation and Status

According to a source with knowledge of the negotiations, the proposed valuation for Indus OS is $60 million. The source requested to remain unnamed due to the confidential nature of the discussions. While talks are advanced, the acquisition has not been finalized.

Neither PhonePe nor Indus OS provided an immediate response to inquiries regarding this matter.

Initial Reporting

The initial report concerning this potential acquisition was published by the Indian news source, Entrackr.

Indus OS Capabilities

Indus OS provides the infrastructure for multiple third-party Android stores, notably including Samsung’s Galaxy Store. It also delivers localized content and applications to its partners.

User Base and App Availability

Indus OS stated late in the previous year that it provides its partners with access to a catalog of 400,000 applications. These apps are available in both English and 12 different Indian languages.

Having secured approximately $21 million in funding over its seven-year history, Indus OS generates revenue through advertising. The company has built a user base exceeding 100 million individuals.

Future Plans

The startup intends to introduce a dedicated app store for direct user access once Google permits the inclusion of third-party app stores. This development was shared by another source familiar with the company’s strategy.

Strategic Rationale

The specific reasons behind PhonePe’s interest in Indus OS remain uncertain. PhonePe currently operates its own mini app store within its application.

Several companies, including PhonePe competitor Paytm, have either launched or are exploring the possibility of launching their own mini app stores in recent months.