AI Business
6d ago
Perplexity's Free AI Subscription Boosts User Base in India Amid Revenue Growth
Aug 18, 2026
AI Summary
Perplexity's partnership with Airtel to offer free Pro subscriptions significantly increased its user base in India, resulting in millions of downloads and a surge in monthly active users. Despite a sharp decline in downloads after the promotion ended, revenue from in-app purchases and subscriptions has continued to rise, indicating potential for converting free users into paying customers.
- Perplexity partnered with Airtel in July 2025 to offer a free 12-month Pro subscription to its 360 million customers.
- The promotion led to 5.9 million app downloads in July 2025, a 625% increase from the previous month, and a total of 56 million downloads during the offer period.
- Monthly active users peaked at 22 million in October 2025, with a decline to nearly 14 million by July 2026, still significantly higher than pre-promotion levels.
- After the free subscription period ended, downloads fell by over 90%, but in-app purchase and subscription revenue increased by about 60% from the promotional period.
- The average daily in-app purchase revenue rose by 9% from the previous month and 27% compared to the first half of 2026.
- Perplexity's monthly net mobile revenue in India grew from approximately $34,000 in January 2025 to $156,000 in July 2026.
- Other AI companies, including OpenAI and Google, have launched similar promotions in India, indicating a trend towards subsidizing access to attract users in a price-sensitive market.
- The long-term impact on user conversion to paying customers remains uncertain as the promotional users approach the end of their free subscriptions.
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