While OpenAI leads the AI scene in the U.S., Perplexity is making bold moves to capture the fast-growing Indian market. The search-focused AI startup is rapidly gaining millions of users in India, the world’s second-largest internet and smartphone market, aiming for mass adoption at a scale few others can match.
Exclusive Airtel Partnership Unlocks Millions of Users
Perplexity recently partnered with Bharti Airtel, India’s second-largest telecom operator, to offer a free 12-month Perplexity Pro subscription to all 360 million Airtel subscribers. Airtel confirmed this deal is exclusive, preventing other Indian telecoms from providing similar access.
This partnership is part of Perplexity’s global expansion strategy, which includes alliances with over 25 telecom operators worldwide, such as SoftBank in Japan and SK Telecom in South Korea.
In the second quarter, Perplexity’s downloads in India surged 600% year-over-year, reaching 2.8 million. For comparison, OpenAI’s ChatGPT downloads grew 587% to 46.7 million. Monthly active users also show strong growth, with Perplexity’s MAUs rising 640% year-over-year, while ChatGPT’s increased by 350%. Although ChatGPT holds a larger overall user base, India is Perplexity’s biggest market by active users.
Building on Strategic Partnerships and Local Investment
Earlier this year, Perplexity teamed with Paytm — a leading fintech platform with over 500 million downloads — to integrate AI-powered search capabilities into the Paytm app, expanding its reach in India.
Perplexity’s CEO Aravind Srinivas has committed $1 million in investments and dedicated time to supporting AI development in India. The company is exploring ways to grow its user base by targeting students with its AI tools.
Despite rapid user growth, Perplexity’s revenue remains far behind ChatGPT globally. Both platforms offer $20 monthly subscriptions, but ChatGPT’s worldwide in-app revenue surged to $773 million in Q2, compared to Perplexity’s $8 million.
India poses additional hurdles due to consumer price sensitivity. While ChatGPT’s in-app revenue in India grew 800% year-over-year to $9 million, Perplexity has yet to generate notable revenue. Partnerships like the Airtel deal could help Perplexity increase paid subscriptions in the near term.
What The Author Thinks
India’s vast and tech-savvy population offers enormous growth potential for Perplexity, but turning millions of users into paying customers will be the true test of success. Monetization strategies tailored to price-sensitive markets will be critical for Perplexity to rival OpenAI in the long run.
Featured image credit: FMT
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