Alternative app store AltStore raises $6M, connects with the fediverse

AltStore, a pioneering alternative app marketplace in the European Union, is making significant strides by integrating with the fediverse, an open social web platform. This innovative move aims to link users from various open social applications, such as Mastodon and Meta's Threads, allowing them to receive updates from their favorite apps in a new and interactive manner. In an exciting development, the startup has successfully closed a $6 million Series A funding round led by Pace Capital. This investment grants the firm a 15% equity stake in AltStore and will enable the founders, Riley Testut and Shane Gill, to expand their team. Notably, Mike McCue, CEO of Flipboard and a supporter of the fediverse, will now join the startup's board. The founders, now operating out of New York, are optimistic about the future of alternative app stores, particularly as new competition regulations emerge. With the fresh capital, AltStore is set to launch its services in additional markets, including Australia, Brazil, and Japan, within the year. The startup has witnessed substantial growth following the EU's Digital Markets Act (DMA), which has introduced more competition in the app store landscape, compelling major players like Apple to allow new entrants. While AltStore features its own third-party applications, such as the popular video game emulator Delta, it has also begun to expand its offerings by adding other third-party apps since June 2024. This includes the virtualization app UTM, which has pressured Apple to reconsider its App Store policies regarding virtual machines. Additionally, the company has collaborated with Epic Games to bring mobile titles like Fortnite to its EU storefront, AltStore PAL. This year, AltStore has also ventured into the adult app sector with the introduction of Hot Tub, the first iOS app catering to adult content, which has quickly become its top offering. In April, AltStore implemented a self-publishing feature for developers on AltStore PAL, further fueling its growth. The platform now boasts over 100 developers, surpassing the number available on Epic Games' alternative gaming store. AltStore appeals to a diverse range of developers, including independent creators and those unable to meet Apple's stringent app guidelines, such as those related to adult content. The store accommodates various business models, from traditional subscriptions to donation-based funding. Co-founder Testut expressed confidence in their growing user base, stating, "We have hundreds of thousands of users. Wonderful and good numbers." With the recent funding, AltStore plans to launch its own Mastodon server operating on the ActivityPub protocol. This will allow users to view app updates and notifications from the developers they follow. Developers can choose to publish their app updates to this new server, enabling users with Mastodon or Threads accounts to receive real-time updates on app changes directly in their timelines. Testut emphasized the social aspect of this integration, saying, "It’s adding a social layer. People can reply to apps from their Mastodon account. They can like stuff from their Threads account." Furthermore, AltStore aims to enhance discoverability for users by providing access to the server and its hosted accounts, helping them find new apps to explore. To support the ecosystem that will facilitate its social network, AltStore intends to allocate $500,000 to various fediverse projects, having already donated $300,000 to Mastodon gGmbH and contributing to several other initiatives.