What packaging option are available for python/django
How is this API key used? Is it a google maps api? Is it provided in scripts that go to the browser?  If so, it's already out in the open, anyone using your site will see it, so you're trying to provide a $100 lock for a $0.01 piece of information.  If it's a google maps api, it's not secured by keeping it hidden, but rather it's tied to a domain/directory (IIRC).
Can you share a little more what the API key is and is for, then maybe we can help you find a better solution to keep it secure.
I am starting on developing a django application on a shared webhosting server(alwaysdata.com).
I would like to understand what are the packaing options available to package a django application (preferably in compiled form)
I would like to setup the source code repository on my system and build using the python packaging and deploy the package on alwaysdata.com.
I would like the option of not having to share the source code on alwaysdata.com.
Looking at pip , I am not able to find this option. 
EDIT
 A few more clarification: I would need the ability to not share the sourcecode since it contains the "API secret key" which I would not want to compromise. The more I look into it , the more i believe that there is no way for me to distribute binary only distribution.