AltStore, one of the first third-party app marketplaces to launch under the EU’s Digital Markets Act (DMA), has raised $6 million in Series A funding to expand globally and integrate with the fediverse, the decentralized social web connecting platforms like Mastodon and Threads.
The round was led by Pace Capital, which acquired a 15% equity stake in AltStore. The funding will enable the company to grow its team beyond its co-founders, Riley Testut and Shane Gill, as it scales its platform to new markets.
Mike McCue, CEO of Flipboard and a strong advocate for decentralized social networks, is joining AltStore’s board as part of the investment.
Building the next generation of open app ecosystems
Founded in 2019, AltStore began as a workaround for iOS sideloading before evolving into a fully compliant third-party app marketplace under Europe’s DMA legislation. The startup gained early traction with its flagship app, Delta, a video game emulator, and has since expanded its catalog to include UTM (a virtual machine app) and Hot Tub, the first iOS app for adult content — previously banned under Apple’s App Store guidelines.
AltStore now hosts over 100 developers, surpassing Epic Games’ own alternative app store in Europe. Its open approach allows developers to self-publish apps without the restrictive approval process imposed by traditional platforms.
“We have hundreds of thousands of users,” said Riley Testut, AltStore’s co-founder and CEO. “Developers love that we support different business models — whether that’s subscriptions, one-time purchases, or community-driven donations. We want to make app distribution more open, diverse, and fair.”
The company plans to bring its storefront to Australia, Brazil, and Japan later this year as other regions move toward similar competition and interoperability laws.
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Connecting apps to the fediverse
In tandem with its funding, AltStore announced plans to integrate with the fediverse, allowing users of decentralized social networks like Mastodon and Threads to follow app updates directly from their timelines.
The company is launching its own Mastodon server built on the ActivityPub protocol, where developers can opt in to publish automated app updates. These updates will appear as posts users can follow, like, or reply to — effectively adding a social discovery layer to AltStore’s app ecosystem.
“It’s adding a social layer,” said Testut. “People can reply to apps from their Mastodon account or like updates from their Threads account. We want to make app discovery feel as natural as social media.”
The platform also plans to connect with Bluesky, using bridging tools developed by the nonprofit A New Social, further extending interoperability across decentralized networks.
Giving back to the open web
AltStore has committed $500,000 of its new funding to support projects in the fediverse ecosystem. Recipients include Mastodon gGmbH ($300,000), Bridgy Fed (A New Social), Ivory + Phoenix (Tapbots), Tapestry (The Iconfactory), mstdn.social, Akkoma, PeerTube, BookWyrm, and Fedify.
“We want to give back to the ecosystem that makes this open, social web possible,” said Testut. “Supporting the fediverse means supporting the future of decentralized, creator-driven technology.”
About AltStore
AltStore is a New York–based third-party app marketplace founded by Riley Testut and Shane Gill. Originally known for its iOS emulator Delta, AltStore has grown into one of Europe’s leading alternative app stores following the introduction of the EU Digital Markets Act (DMA).
The platform allows developers to publish apps directly to users, supports multiple monetization models, and now integrates with the fediverse to make app discovery more social and open.
