AltStore, a pioneering third-party app marketplace in the European Union, has recently announced a significant $6 million Series A funding round led by Pace Capital. This investment grants Pace Capital a 15% equity stake in AltStore and marks the company’s first external funding endeavor. The infusion of capital is set to bolster AltStore’s expansion plans and enhance its operational capabilities.
Founded by Riley Testut and Shane Gill, AltStore has been at the forefront of offering alternative app distribution channels, especially in light of the European Union’s Digital Markets Act (DMA). This legislation has compelled major tech companies, including Apple, to accommodate third-party app stores, thereby fostering a more competitive and diverse app ecosystem.
Since the enactment of the DMA, AltStore has experienced substantial growth. Initially, the platform featured its proprietary apps, notably the Delta video game emulator. In June 2024, AltStore expanded its offerings by incorporating third-party applications, including the virtual machine app UTM. This strategic move exerted pressure on Apple to permit virtual machines within its App Store.
In August 2024, AltStore collaborated with Epic Games to introduce popular titles like Fortnite to its European Union storefront, AltStore PAL. The platform further diversified its content by venturing into the adult app market, hosting applications such as Hot Tub, which has since become its top-performing app.
April 2025 marked a significant milestone for AltStore as it began allowing developers to self-publish their applications on AltStore PAL at no cost. This initiative attracted over 100 developers to the platform, surpassing the number of developers on Epic Games’ alternative game store. AltStore’s inclusive approach appeals to a wide range of developers, including independent creators and those whose content may not align with Apple’s stringent guidelines.
The platform’s flexible business model supports various monetization strategies, from traditional subscriptions to user donations, providing developers with the autonomy to choose the most suitable approach for their applications.
With the recent funding, AltStore is poised to expand its operations beyond the European Union, targeting markets in Australia, Brazil, and Japan within the year. The additional capital will facilitate the hiring of new staff to support this global expansion.
In a move to enhance user engagement and app discoverability, AltStore is integrating with the fediverse by launching its own Mastodon server operating on the ActivityPub protocol. This integration will enable users to receive app updates and information directly through their Mastodon or Threads accounts. Developers can opt to have their app updates automatically published to this server, adding a social dimension to the platform.
Users will have the ability to interact with app updates by replying, liking, and sharing content from their Mastodon or Threads accounts. This social layer aims to foster a more interactive and community-driven app ecosystem.
To support the broader fediverse community, AltStore has committed $500,000 to various projects within the ecosystem. Recipients include Mastodon gGmbH, Bridgy Fed by A New Social, Ivory + Phoenix by Tapbots, Tapestry by The Iconfactory, mstdn.social, Akkoma, PeerTube, BookWyrm, and Fedify.
This strategic funding and integration underscore AltStore’s commitment to providing a diverse and user-centric app marketplace, challenging traditional app distribution models, and embracing the principles of decentralization and open-source collaboration.
