AltStore, an alternative iPhone app marketplace co-founded by Riley Testut and Shane Gill, has raised $6 million in Series A funding led by Pace Capital.
This major investment will fuel AltStore’s strategic expansion into new markets as regulatory pressure on Apple’s app ecosystem intensifies worldwide.
The new funding arrives at a pivotal moment, with countries outside Europe moving to adopt regulations that force Apple to open up app distribution beyond the official App Store.
AltStore is poised to capitalize on this trend, making its platform accessible to a broader range of users and developers worldwide.
How did AltStore secure its Series A funding?
Pace Capital led the $6 million Series A round, claiming a 15 percent equity stake in AltStore. The cash infusion enables the two-person startup to scale its operations and expand its infrastructure for international launches.
Key hires and community integrations are expected as AltStore becomes a hub for developers seeking alternatives to Apple’s store model. Riley Testut describes the raise as a validation of user demand and market opportunity.
AltStore began as a niche EU sideloading tool, but its expansion to support over 100 developers has transformed it into a credible marketplace.
The additional funding will help AltStore compete with established distribution channels and support broader access.
Did you know?
The JFTC was established shortly after World War II in 1947, giving Japan a long history of competition law enforcement.
Which countries are next for AltStore’s global expansion?
AltStore will expand to Australia, Brazil, and Japan by the end of this year. The United Kingdom is set to follow in 2026, as new regulatory frameworks are implemented.
This schedule closely tracks developments in fair competition law, particularly new rules issued by Japan’s Fair Trade Commission, which will require Apple to accept third-party app stores and payment options by December 2025.
Each target country is undergoing major changes to iOS app distribution, following the precedent set by the European Digital Markets Act.
AltStore aims to capitalize on local demand for alternative platforms, providing developers with a space to reach audiences previously inaccessible under Apple’s restrictions.
What is driving regulatory change for alternative app stores?
The Digital Markets Act, enacted by the EU in March 2024, broke Apple’s monopoly on iOS app installations, requiring the company to allow sideloading and the use of alternative marketplaces.
Legislators in Japan, Australia, and Brazil are pursuing similar frameworks, with deadlines that align with AltStore’s expansion timeline.
Apple faces continued resistance and is introducing a Core Technology Fee for apps distributed outside the App Store, aiming to maintain control over its lucrative ecosystem.
Still, AltStore’s early success with popular apps like Epic Games’ Fortnite shows that alternatives can thrive if given legal standing and user support.
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How does fediverse integration change app discovery?
AltStore is adding a social layer for developers and users by integrating its platform with the fediverse, using the open ActivityPub protocol. This enables app updates and conversations to be automatically published to services like Mastodon and Threads, providing users and developers with new ways to engage and share feedback.
With $500,000 set aside for fediverse projects and donations, AltStore’s push into decentralized social media is designed to foster transparency and community.
Board additions, such as Flipboard CEO Mike McCue, underscore AltStore’s commitment to the open web and alternative discovery channels.
Why are developers and users watching AltStore’s next moves?
Developers and users are closely monitoring AltStore as global regulatory reforms move at a faster pace than ever. With more countries demanding open app ecosystems, AltStore is emerging as a test case for what iOS app distribution could look like beyond Apple’s walled garden.
For users, expanded AltStore access means more choice and fewer restrictions, especially for apps that previously ran afoul of Apple’s guidelines.
For developers, it presents an opportunity to reach millions of iPhone users and experiment with new social and monetization features that traditional app stores do not readily offer.
AltStore’s following chapters will be closely watched by industry analysts, developers, and regulators.
Whether its expansion creates lasting competition for Apple’s App Store or opens new community-driven niches remains to be seen. Still, the $6 million funding makes a bold statement about the market’s appetite for change.
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