Sophie Blake
Alternative iOS app marketplace AltStore has raised $6 million in Series A funding to expand beyond Europe and connect its platform with the fediverse, the decentralized social web that powers platforms such as Mastodon, Threads, and Bluesky.
The round, led by Pace Capital, gives the venture firm a 15% stake in AltStore and marks the startup’s first outside investment. The funding will allow AltStore’s founders, Riley Testut and Shane Gill, to hire a team and accelerate both international expansion and technical development. Flipboard CEO Mike McCue, a strong advocate of the open web, is also joining the company’s board.
Launched in 2024 under the EU’s Digital Markets Act (DMA), AltStore PAL was among the first alternative app stores on iOS. Since then, the platform has drawn hundreds of thousands of users and more than 100 independent developers by offering apps Apple doesn’t allow in its App Store — including emulators, torrenting tools, and adult content.
Following its early success, AltStore plans to enter Japan, Brazil, and Australia by the end of 2025, with a UK launch set for 2026, according to Testut. The founders said expanding to these markets aligns with new digital competition laws emerging globally.
AltStore’s partnership with Epic Games last year brought Fortnite and other titles to its EU storefront. The company also introduced a self-publishing system in April 2025, allowing developers to upload apps directly for free, further increasing its catalog and attracting creators seeking more flexibility than Apple’s ecosystem allows.
In its next phase, AltStore is positioning itself as the first “federated” app store, using the ActivityPub protocol to integrate with the fediverse — a network of decentralized social platforms. Each AltStore source will have its own ActivityPub account, allowing users to follow app updates and interact with developers directly from Mastodon, Threads, or Bluesky.
Through a new Mastodon server managed in partnership with Mastodon gGmbH, AltStore users will soon be able to see app updates, like posts, and reply to developers from their preferred fediverse platform. The integration will roll out to AltStore PAL in the coming months, with beta access available via explore.alt.store.
Testut said this “social layer” could make app discovery more organic, as updates and recommendations circulate through the open social web.
Alongside its expansion, AltStore is allocating $500,000 of its new funding to support projects that maintain and grow the fediverse ecosystem. Beneficiaries include Mastodon gGmbH ($300,000), Bridgy Fed by A New Social, Ivory + Phoenix by Tapbots, Tapestry by The Iconfactory, mstdn.social, Akkoma, PeerTube, BookWyrm, and Fedify.
The founders said the move underscores their belief that AltStore’s long-term success depends on the health of the open social web.
As part of the funding deal, AltStore will transition from an LLC to a public benefit corporation (PBC) to ensure its mission — enabling open, independent app distribution — remains central to its operations.
Testut said the startup’s goal is to offer developers and users greater freedom and transparency in how apps are distributed and discovered. “Alternative app marketplaces are needed more than ever,” he said, adding that AltStore’s evolution aims to challenge Apple’s dominance while contributing to a more open digital ecosystem.
With funding secured, AltStore now faces its next test: scaling globally while building the infrastructure for what could become the world’s first socially connected app marketplace.
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