Perplexity’s free AI offer left it with millions more users in India

THE NEWS

What happened

Perplexity's strategic partnership with Indian telecom giant Airtel to offer free premium subscriptions has yielded significant long-term results. Despite a sharp drop in new downloads after the promotional period ended, the company retained a substantial user base and saw revenue increase by over 60% as early users transitioned from free access to paid plans. This experiment serves as an early validation for the industry strategy of using subsidies to acquire scale in price-sensitive markets like India before monetizing that audience.

CONTEXT

Why it matters

Perplexity's massive giveaway in India has proven its long-term value. By partnering with Airtel to offer free Pro subscriptions, Perplexity acquired millions of users who are now actively paying. Data shows that despite a drop in new downloads once the promo ended, revenue actually increased by 60% as users transitioned from free access to paid plans. This validates the strategy of using subsidies to build scale in price-sensitive markets before monetizing the audience.

AT A GLANCE

Key facts

The main verified points:

• Perplexity partnered with Airtel in July 2025 to provide a free 12-month Pro subscription to 360 million customers.
• The campaign generated 5.9 million app downloads in July 2025 alone, a 625% increase from the previous month.
• Total downloads during the offer period reached 56 million, more than nine times the preceding seven-month total.
• Monthly active users peaked at 22 million in October and remained near 14 million by July of the following year.
• In-app purchase revenue in India rose approximately 60% after the free offer ended compared to the promotional period.
• Perplexity's monthly net mobile revenue in India grew from $34,000 in January 2025 to $156,000 in July 2026.
• Competitors like OpenAI and Google have since launched similar free subscription deals with Indian carriers.