The Walmart-owned digital payments company, PhonePe is expected to acquire an India-based startup that operates an eponymous third-party Android app store, Indus OS, for 60 Million Dollars.
The deal is worth $60 million, according to the source, who requested anonymity because the matter is private. The transaction has yet to be completed. A request for comment from PhonePe and Indus OS was not immediately answered.
According to reports, the purchase would help PhonePe’s Switch app, which consolidates multiple apps into a single app. It’s a kind of super app that lets PhonePe users book cabs, hotels, and grocery and food deliveries, among other things.
Indus OS says that its super app, Indus App Bazaar, has 100 million users. The app has over 1.1 billion downloads, and the website lists over 400K apps from various categories. PhonePe will allow in-app transactions for Indus App Bazaar, according to the sources.
“PhonePe and Indus OS have signed the terms of the deal two weeks ago,” said one of the people requesting anonymity. “The transaction is a cash deal worth $60 million.”
“Post-acquisition, team Indus OS will be spearheading Switch and building an app ecosystem for PhonePe, Following the deal, Indus OS’s investors would exit the company with cash, and the team along with founders would join PhonePe,” said the second person who also wished not to be named.
It’s still unclear why PhonePe is interested in Indus OS. On its app, the Bangalore-based startup has long had its own mini app store. In recent months, a number of companies, including PhonePe competitor Paytm, have either launched or considered launching their own mini app stores.