Perplexity AI achieved massive user growth in India through a free subscription offer with Bharti Airtel. While new downloads have slowed since the offer ended in January 2026, the company is seeing signs of revenue growth as it attempts to convert free users into paying subscribers.
Perplexity AI has concluded a major growth experiment in India, providing a glimpse into how global artificial intelligence companies are attempting to secure a foothold in one of the world's most populous digital markets. The company partnered with telecom giant Bharti Airtel to offer its premium 'Perplexity Pro' service free for 12 months to Airtel's customer base. This promotional campaign, which accepted new sign-ups until January 2026, served as a massive customer acquisition drive.
The Impact of Subsidized Growth
During the peak of the promotional period, the impact on user acquisition was significant. The partnership drove an unprecedented surge in downloads, with Perplexity recording tens of millions of app installations. At its peak in October 2025, the platform reached 22 million monthly active users in India. This strategy followed a common playbook used by digital firms: offering free premium services to lower the barrier to entry and habituate users to the platform.
User Retention and Revenue Signals
Since the promotional offer concluded in early 2026, new download numbers have naturally declined from their peak. However, the data suggests that a portion of the user base has remained loyal to the platform. By July 2026, monthly active users were recorded at nearly 14 million. While this is a decrease from the peak, it represents a substantial increase compared to pre-promotion levels.
More importantly for the company's long-term sustainability, revenue has shown signs of resilience. Data indicates that in-app purchase and subscription revenue in India actually increased after the download boom subsided. This suggests that some users who experienced the service for free are now willing to pay for it, a key challenge for any company transitioning from a free-tier growth model to a paid subscription business.
Business Risks and Market Context
It is important for Indian investors to note that Perplexity AI is a private company and is not listed on the National Stock Exchange (NSE) or Bombay Stock Exchange (BSE). Therefore, there is no public stock to trade, and the company does not release public quarterly financial filings like listed Indian firms.
The company operates in an intensely competitive environment. It faces significant challenges from well-capitalized tech incumbents including Google, OpenAI, and Anthropic, which are also investing heavily to capture the Indian AI search market. Furthermore, the business model faces pressure from the high infrastructure and computing costs required to deliver AI services at scale. The sustainability of Perplexity’s growth will depend on its ability to continue converting these users into paid subscribers at a rate that covers these operational costs. Investors monitoring the broader AI sector in India should track whether these global players can maintain user loyalty as they shift from free trials to paid subscription models in a price-sensitive market.