In a post written on Medium, Rewound said it is launching a Rewound.fund to revive the app.
"Since we have been deprived of revenue by Apple, we are starting this fund for development of a Rewound Web App for iPhone/Android and Android native app," said the company on Tuesday.
Rewound app let people customize their iPhones to look like a 2000s era MP3 player.
It grew exponentially across the world from Japan to China to Iran to Russia and the rest of mainland Europe.
"It got to 19th spot in the US Music App charts and charted globally. It was a viral sensation, spreading across the world," wrote Rewound.
"Something was happening, something magic... people across the world were rediscovering an old love together, experiencing their music in a whole old way via a programmable music player. THEN Apple KILLED IT," it added.
Apple removed it because the app copied the iPod design.
"Rewound was specifically designed not to infringe on Apple's trademarks and we didn't. Rewound could look many ways. Not until users started sharing/using Clickwheel skins did they ban the app," defended Rewound.
According to Rewound, another reason why Apple removed it is because the app charged for Apple Music features.
"This is less unreasonable BUT they already approved the in-app purchase before Clickwheel skins started proliferating... then they decided it was not ok. Double standard?" said Rewound.
There was no official Apple statement on Rewound's post.
Rewound said it can't update the app to get it re-approved without breaking the app for more than 170,000 users.
"So we're going to have to upload a separate version. They're just going to keep saying no until users can't possible make it like their favourite music player," said the app developer.
( With inputs from IANS )