How Indus OS could challenge Google's dominance in the app store space

Today the start-up, launched by three IIT Bombay alumni seven years ago, claims to be the largest indigenous app store with a user base of over 100 million

Paytm recently made headlines when it launched a mini app store, a step seen as an attempt to curtail internet giant Google’s ‘monopoly’ in the space. But the move to build the country’s first indigenous app store and democratise apps so that customers can use them in their preferred language had actually started seven years ago, by three IIT Bombay alumni. 

Today the start-up, Indus OS, claims to be the largest indigenous app store with a user base of over 100 million. It recently turned profitable and has delivered one billion application installs and updates in the past 12 months. The founders of the company Rakesh Deshmukh, Akash Dongre and Sudhir B, however, just do not want themselves to be seen as taking on the Googles and Apples of the world through their venture. “India is a large market and three to four players can easily exist, just like it’s happening in the case of ecommerce,” says Deshmukh.

However, after Google recently said that all apps that sell digital goods within Play Store have to use its billing system--a decision which was later deferred by the technology giant till April 2022--Indus OS is seeing a 40 per cent jump in the number of app developers registering on its platform. 

Deshmukh explains, his company is not creating a new vertical in the market with his venture. India is a country with 19 billion downloads annually and 40 per cent of these do not happen on Google Play Store. This means, there is already a market for players like Indus OS to tap, he argues. 

Before Indus OS came into being, the trio had already launched and wrapped up two start-ups -- one in the payments segment and the other in application development. In fact, theirs was the first company to build a QR code in 2007. However the idea was way ahead of its time and did not scale heights.

 

The early 2010 period was an interesting time when India was at an inflection point during which most of the English speaking people already had a smartphone. However, there were millions of people who were coming online for the first time. “Based on our market research we found that these users did not understand the meaning of search or apps, and it was a whole new world for them,” reminisces Deshmusk. Hence, the three serial entrepreneurs began building a desi app store which would help India adapt to the internet much faster. 

When you look at an app store it looks like a simple product but as you look deeper it is a complex interplay of technology and display. It took the company two and a half years to build its platform for local languages, which today supports 12 native languages apart from English. While Indus OS was creating an app store which would take care of Indian developer’s interest, the biggest challenge thrown at it was to bring developers on its unheard platform. With its local language display, it was the perfect portal for discovery of local content which was understood by app developers. This is one of the reason why from just 300 apps in 2013, it today hosts over 400,000 apps on its platform. The Omidyar and Samsung Ventures backed firm also strictly follows a non-email approach unlike Google so those who do not have an email id can also download apps from this made in India app store. It has tied up with the likes of Samsung, Micromax and Karbonn and come preloaded on their devices in India. 

However, its distribution is restricted only to OEM partnerships. If a user having a phone of another brand wants to explore Indus OS, it is not possible as it cannot be downloaded from another app store. Even if a user gets a link to the app store and installs it, the phone pops up with security warnings which causes discomfort to the user. “That experience should have a level-playing field and it should be the same as Google Play Store,” says Deskhmukh. The company is in talks with government stakeholders to help them draft a policy for such a level-playing field for app store players.