Akash Dongre, co-founder of the PhonePe-owned Indus Appstore, has stepped down after over a decade of leading the app discovery and distribution platform. This transition marks another significant leadership change for the company, following the departure of former CEO and co-founder Rakesh Deshmukh earlier this year. Dongre’s exit raises questions about the future direction of Indus Appstore, especially as it seeks to strengthen its position against established competitors like Google’s Play Store.
### Indus Appstore’s Journey and Evolution
Indus Appstore, originally founded as Indus OS in 2013 by Akash Dongre, Rakesh Deshmukh, and Sudhir Bangera, was designed to cater to Indian users with a focus on local languages and content discovery. The company initially gained traction by partnering with local smartphone brands like Micromax, and by 2016, it claimed to be the second-largest mobile operating system in India by shipments.
The company pivoted its business model in 2019 to focus on creating an app store, collaborating with Samsung to integrate its marketplace into a broader range of devices. The acquisition by PhonePe in July 2022, following a legal settlement, led to a rebranding as Indus Appstore. The Walmart-backed fintech formally launched the platform in February 2024, positioning it as a homegrown alternative to the Google Play Store, with support for 12 Indian languages.
### Competitive Landscape and Funding Environment
The Indian app distribution market is dominated by Google Play Store, which holds a substantial share due to its integration with Android devices. However, the market also presents opportunities for local players like Indus Appstore, especially with increasing regulatory scrutiny on global tech giants. The Indian government has been encouraging the development of indigenous digital ecosystems, which could benefit platforms like Indus Appstore.
Despite the competitive pressure, Indus Appstore has achieved notable milestones, such as onboarding Xiaomi India in 2025 and amassing over 150 million users. The backing by PhonePe, itself a significant player in India’s fintech ecosystem, provides a strategic advantage, potentially allowing the app store to leverage PhonePe’s extensive user base and distribution networks.
### Implications for India’s Startup Ecosystem
Dongre’s departure occurs amid a dynamic phase in India’s startup ecosystem, where leadership transitions can have profound effects on company strategy and investor confidence. For Indus Appstore, sustaining its growth momentum will be critical, especially as it continues to build partnerships with smartphone manufacturers and expand its language offerings. The company’s ability to innovate and adapt under new leadership will be crucial in maintaining its competitive edge.
The development highlights a broader trend of consolidation and strategic pivots within India’s tech industry, with startups increasingly seeking synergies through acquisitions and partnerships. This environment presents both challenges and opportunities for entrepreneurs and investors, with a focus on scalability and local adaptation becoming more pronounced.
As Indus Appstore moves forward, stakeholders will be watching how the company navigates its post-Dongre era. For founders and investors, the key takeaway is the importance of strategic leadership transitions and maintaining a clear vision amid market shifts. The next step for Indus Appstore will likely involve solidifying its leadership team and exploring new avenues for growth, potentially setting a precedent for other indigenous platforms seeking to challenge global incumbents.
