Market & Regulation
Perplexity's AI Offer Boosts User Base in India
TechCrunch AIhigh confidence
Why it matters
- →Demonstrates the potential of bundling AI services with telecom offerings to rapidly expand user base.
- →Provides insights into user conversion from free to paid services in a price-sensitive market.
- →Highlights India's role as a significant testing ground for AI companies seeking scale and revenue.
Perplexity's collaboration with Airtel to provide free AI subscriptions has resulted in a massive increase in its user base in India. The offer, which began in July 2025, led to a surge in app downloads and active users, peaking at 22 million. Although downloads decreased after the promotion ended, revenue from in-app purchases has increased, indicating some users are willing to pay for the service. This initiative serves as an early test of whether free AI services can convert users into paying customers in India, a market known for its large user base but challenging monetization.
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