In July 2025, Perplexity, an AI-powered search startup, partnered with Bharti Airtel, India’s second-largest telecom operator, to offer a free 12-month subscription to its premium service, Perplexity Pro, valued at approximately $200. This initiative aimed to rapidly expand Perplexity’s user base in the Indian market.
The impact was immediate and substantial. In July 2025 alone, Perplexity recorded 5.9 million app downloads in India, marking a 625% increase from the previous month. This surge surpassed the total downloads accumulated during the entire first half of the year. Over the seven-month period that the offer was available, the company amassed 56 million downloads in India, more than nine times the downloads from the preceding seven months. Monthly active users (MAUs) peaked at 22 million in October 2025, a significant rise from the 2.6 million average MAUs in the first half of the year.
India’s vast population, exceeding a billion internet subscribers and over 700 million smartphone users, presents a lucrative market for technology companies. The country’s relatively low mobile data costs further enhance its appeal. Recognizing this potential, AI firms have been increasingly targeting Indian consumers with tailored plans, free access, and strategic partnerships to build a substantial user base.
However, the conclusion of the free subscription offer in January 2026 led to a sharp decline in new downloads. Between February and July 2026, Perplexity recorded 3.3 million downloads in India, a decrease of over 90% compared to the previous six months. Despite this downturn, the company maintained a robust user base, with MAUs standing at nearly 14 million in July 2026, down 37% from the October peak but still significantly higher than pre-promotion figures.
Notably, the decline in downloads did not correspond with a drop in user spending. Sensor Tower estimates that Perplexity’s in-app purchases in India remained steady, indicating that a portion of users transitioned to paid subscriptions after the free period ended. This suggests that the promotional strategy effectively converted free users into paying customers, highlighting the potential of such initiatives in emerging markets.
Perplexity’s experience underscores the challenges and opportunities in monetizing AI services in price-sensitive markets like India. While free promotions can drive rapid user acquisition, sustaining growth and converting users to paid plans require strategic planning and continuous engagement. As the AI landscape evolves, companies must balance aggressive expansion tactics with sustainable monetization strategies to succeed in diverse global markets.
