PhonePe, an Indian multinational digital payments and financial services company officially launched its Indus Appstore, a 'made in India' app with over a decade of experience in the app store space. The company had a compelling panel discussion on the critical issue of sustainable business models for app stores
The company said that the panel deliberated on the sustainable business models for app stores, which has been focusing on the unique challenges and opportunities within the Indian market. The panel further shed light on the path forward for app stores in the Indian market, which will be seeking to foster an ecosystem which supports innovation, inclusivity, and growth, as per the company.
Moderated by Sajith Sivanandan, head of Disney+ Hotstar, the panel brought together insights from prominent Indian startup leaders like:
- Virendra Gupta, Founder of VerSe Innovation
- Neeraj Roy, Founder and CEO of Hungama
- Harsh Jain, Co-founder and CEO of Dream11
- Murugavel Janakiraman, CEO of BharatMatrimony
Sameer Nigam, Founder and CEO of PhonePe said, “We are committed to offering a level playing field for all developers. The Indus Appstore will not mandate the use of any specific payment gateway, allowing developers the freedom to choose any service they prefer."
PhonePe
He further added, “With this approach, we aim to democratise the app ecosystem by offering an alternative that prioritises the needs of Indian developers and users."
Among the key challenges highlighted by the panellists were “limited revenue streams” where the reliance on a small number of dominant app stores often forces startups into accepting unfavourable revenue-sharing models and constrained monetisation options.
Another concern was the high commission fees. The excessive fees charged by dominant app stores were identified as a significant barrier, eating into the already slim profit margins of app developers, particularly those in the early stages of their business.
Lack of discoverability was another challenge where apps struggled to compete for visibility and find their audiences within crowded app stores. This hinders growth and innovation, particularly for smaller developers.
Other concerns were opaque policies and practices, cultural and linguistic barriers and data security and user trust.
To address these challenges, the panellists proposed several solutions aimed at creating a more equitable and thriving app store ecosystem.
“App stores should provide flexible monetisation options, including subscriptions, in-app purchases, and tailored advertising solutions to fit various app types. By reducing commission fees and providing alternative monetisation models, app stores can encourage more developers to bring their innovations to the market,” the panellists argued.
“They should also promote inclusivity by supporting multiple Indian languages and catering to regional preferences, app stores should offer tools and support for developers to easily localise their apps, ensuring they are accessible and relevant to all segments of the Indian population”.
Nigam further elaborated on the platform's revenue model, which will focus on advertising and cataloguing services, reinforcing the app store's role as a discovery platform aimed at giving every developer a fair chance to succeed.
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Inputs from IANS
