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

The business move

Perplexity, an AI-powered search assistant, offered new users in India free access to its service through a deal with Airtel. This promotion has ended, yet Perplexity’s revenue from India still rose about 60 percent while app downloads declined. The growth came even without the free offer continuing, indicating that millions of users engaged well enough to generate income after the initial push.

Why it matters

Free trials or subsidized access can be expensive user acquisition strategies that may not always convert into lasting revenue. Perplexity’s case shows such promotions can pay off in high-volume markets like India, helping secure a large user base that eventually drives paid activity. Operators, founders, and investors should note this model pressures competitors to match reach and conversion, especially in cost-sensitive regions where sustained revenue is difficult to build without initial incentives.

Who gains and who gets squeezed

India’s consumers gain affordable access to advanced AI search tools, boosting demand for AI-enabled services. Perplexity strengthens its foothold by capturing a large, active user base through strategic subsidies. Rival AI companies without similar partnerships or offers may lose market share or face increased costs to attract users. Telecom providers like Airtel can also leverage AI promotions to deepen user engagement and upsell connectivity or premium services.

What to watch next

Watch if Perplexity continues growing revenue without further giveaways, which would validate its user monetization strategy. Also observe if more telecom partnerships emerge in other large markets as a route to scale AI services. Finally, tracking competitor responses will reveal how sustainable subsidized user acquisition models are as AI tools proliferate and mature globally.

AI Quick Briefs Editorial Desk