Digital payments firm PhonePe said it has completed the acquisition of Indus OS after reaching an out-of-court settlement with Affle Global Pte Ltd (AGPL), the majority owner of the India-made content and app discovery platform.
PhonePe acquired AGPL’s entire stake at a premium, but did not reveal the deal value. The acquisition was closed after a months-long legal dispute between PhonePe and AGPL and Ventureast Fund on the valuation of IndusOS, which is alternatively called OSLabs.
“We are happy that the matter has been amicably settled for all the entities. We wish PhonePe team the very best for its stated vision of building a homegrown horizontal, local Appstore,” said Mei Theng Leong, director of AGPL, in a joint statement by the firms.
The disputed started last year when PhonePe was in the process of acquiring Indus OS for $60 million as it competes with Paytm, Google Pay and Amazon Pay, which are building their own app discovery platforms.
PhonePe placed a bid to acquire 92 per cent stake in Indus OS at a valuation of around $60 million. AGPL, the biggest shareholder in the company, opposed the deal in courts. In June 2021, AGPL claimed to have won the initial legal battle in a case filed against it by PhonePe in a Singapore court. AGPL estimated Indus OS was worth $90 million and refused to sell its 25 per cent stake for a lower valuation.
Indus OS helps smartphone users consume apps and content in the language of their choice. The closure of the deal gives PhonePe a homegrown local app store and while AGPL gets a premium on its investment.
“We are very excited to embark on this journey with OSLabs, and build just the kind of the localised App store that India needs,” said Sameer Nigam, founder and chief executive officer of PhonePe.