PhonePe's Google-challenger Indus Appstore lost its founding CEO pre-launch

App-discovery platform, born as Indus OS's regional-language App Bazaar, now PhonePe's Android app marketplace for India.

That an Indian app store charging no platform commission on in-app payments — versus Apple and Google's 30% — could break the duopoly.

Rakesh Deshmukh, Akash Dongre and Sudhir Bangarambandi — IIT Bombay alumni — founded the company in 2013 as Indus OS. Through its marketplace App Bazaar, the platform let users discover and access mobile applications in their own language.

Walmart-backed PhonePe acquired parent OSLabs for $90 million in May 2022, after an out-of-court settlement with then-majority shareholder Affle Global. Rebranded Indus Appstore, the platform opened its developer platform in 2023: free for developers the first year, a nominal annual fee after, and no platform commission on in-app payments — set directly against the 30% Apple and Google charge — as part of PhonePe's ambition to take on the duopoly in India. In January 2024, cofounder and CEO Rakesh Deshmukh stepped down and left the company; Dongre continued as chief product officer and Bangarambandi as chief technology officer.

The zero-commission pitch attacked the incumbents' exact revenue engine — 30% in-app fees — a structural wedge, not a cosmetic one.

The bet leaned on India-specific distribution: regional-language discovery for a market whose app stores were built for English speakers first.

The founding CEO left weeks after the developer platform opened, testing whether the mission outlives its founder at the worst possible moment.

PhonePe brought payment rails and Walmart's backing — assets in the app-store fight that neither Google nor Apple can replicate locally in India.

Challenging a platform duopoly needs more than a pricing wedge; it needs the founding team intact through the launch window.

As of 2024-01-02, Indus Appstore continued under cofounders Akash Dongre (CPO) and Sudhir Bangarambandi (CTO), with PhonePe reaffirming the shared vision of a challenger app store for India.