Perplexity Gains Millions of New Users in India After Free AI Offer
perplexity
| Source: TechCrunch | Original article
Perplexity gained millions of new Indian users, boosting its revenue by roughly 60% after its free Airtel AI offer ended, even as app downloads fell.
Perplexity’s free‑trial partnership with Indian telecom operator Airtel has produced a surprising shift in its Indian business. After the offer – which allowed new users to access the AI‑powered search and chat service at no cost – was withdrawn, the company reported a roughly 60 % jump in revenue from the market, even as the number of app downloads fell. The revenue surge coincided with a net increase of “millions” of users, suggesting that many trial participants converted to paying customers or continued using the service without the incentive.
The development matters because it highlights how free‑entry tactics can seed a large user base that later fuels monetisation, a model that is gaining traction among AI startups targeting emerging markets. India’s fast‑growing internet user pool and appetite for generative AI tools make it a key battleground for firms seeking scale. Perplexity’s experience may encourage rivals to experiment with similar limited‑time offers, while also prompting investors to reassess the profitability of freemium strategies in the region.
Going forward, observers will watch whether Perplexity can sustain the revenue lift as the initial hype fades and competition from global players such as Google and local AI services intensifies. Key indicators will include any adjustments to pricing, the rollout of new features tailored to Indian users, and regulatory responses to the expanding footprint of AI chatbots in the country.
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