In the rapidly evolving landscape of artificial intelligence, Perplexity, a San Francisco-based AI search engine startup, is strategically positioning itself to challenge OpenAI’s dominance by focusing on the Indian market. This move underscores the company’s ambition to leverage India’s vast internet and smartphone user base to accelerate its growth and adoption.
Strategic Partnership with Bharti Airtel
A pivotal step in Perplexity’s expansion strategy is its recent partnership with Bharti Airtel, India’s second-largest telecom operator. This collaboration offers Airtel’s 360 million subscribers a complimentary 12-month subscription to Perplexity Pro, a service typically valued at $200. This exclusive agreement ensures that no other telecom provider in India can offer Perplexity’s services to their subscribers during this period. By integrating with Airtel’s extensive network, Perplexity aims to rapidly increase its user base and establish a strong foothold in the Indian market.
Impressive Growth Metrics
Perplexity’s focus on India is already yielding significant results. In the second quarter of 2025, the company experienced a 600% year-over-year increase in downloads within the country, reaching 2.8 million. This growth outpaces OpenAI’s ChatGPT, which saw a 587% increase, totaling 46.7 million downloads in the same period. Furthermore, Perplexity’s monthly active users (MAUs) in India surged by 640% year-over-year, compared to ChatGPT’s 350% growth. Despite these impressive gains, ChatGPT maintains a lead in absolute numbers, with 19.8 million MAUs versus Perplexity’s 3.7 million.
Collaborations with Indian Tech Giants
Beyond its partnership with Airtel, Perplexity has also collaborated with Paytm, one of India’s leading fintech platforms. This integration allows Paytm’s extensive user base to access Perplexity’s AI-powered search engine directly through the Paytm app, which boasts over 500 million downloads. Such collaborations are instrumental in Perplexity’s strategy to embed its services into widely used platforms, thereby enhancing accessibility and user engagement.
Leadership Engagement and Investment in India
Perplexity’s CEO, Aravind Srinivas, has demonstrated a strong commitment to the Indian market. In January 2025, he announced plans to hire an Indian executive to spearhead the company’s growth in the region. Although this initiative was temporarily put on hold due to an overwhelming response, it highlights the company’s dedication to establishing a local presence. Additionally, Srinivas pledged a $1 million investment and committed five hours per week to support AI development initiatives in India, further solidifying Perplexity’s commitment to fostering local talent and innovation.
Challenges in Monetization
While Perplexity’s user acquisition in India is impressive, monetizing this growing user base presents challenges. The Indian market is known for its price sensitivity, which can impact the adoption of premium services. For instance, in the second quarter of 2025, OpenAI’s in-app purchase revenue worldwide surged to $773 million, while Perplexity’s revenue increased to $8 million. In India, OpenAI’s in-app purchases grew by 800% year-over-year to $9 million, whereas Perplexity has yet to generate significant in-app revenue from the region. To address this, Perplexity is exploring various monetization strategies, including offering value-added services and leveraging advertising and e-commerce opportunities.
Competitive Landscape and Future Outlook
Perplexity’s strategic focus on India is part of a broader effort to compete with established AI entities like OpenAI. By tapping into India’s vast and tech-savvy population, Perplexity aims to accelerate user adoption and gain a competitive edge. However, the company must navigate challenges related to monetization and user retention in a market characterized by diverse consumer behaviors and preferences. Success in India could serve as a blueprint for Perplexity’s expansion into other emerging markets, potentially reshaping the global AI search engine landscape.
