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Perplexity's Big India Giveaway: Free Users, Real Money, and the Ultimate Test

In a bold experiment that captured the attention of the AI industry, Perplexity partnered with Airtel, India's second-largest telecom, in July 2025. The deal offered up to 360 million mobile users a free 12-month Perplexity Pro subscription, worth about $200. As that free year winds down, the results are in—and they're surprising.

The promotion triggered a massive surge in downloads. According to Sensor Tower, Perplexity's app downloads in India jumped to 5.9 million in July 2025 alone, a 625% increase from the previous month. That's more than the total downloads in the first half of the year. By the time the offer closed to new users in January 2026, total downloads had reached 5.6 million, nine times higher than the previous seven months. Monthly active users peaked at 22 million in October, up from 8.9 million before the campaign.

But here's the twist: even after the free period ended and downloads plummeted, revenue didn't just hold steady—it grew. Between February and mid-August, in-app purchase and subscription revenue in India rose by 60% compared to the promotional period. Daily revenue even increased by 9% in the month after the first batch of Airtel users faced expiration, and by 27% compared to the first half of 2026.

Appfigures, another analytics firm, confirmed the trend. Perplexity's net monthly revenue from India jumped from $34,000 in January 2025 to $156,000 in July 2026. Total revenue for the first seven months of 2026 reached $878,000, a 16% increase over the entire previous year.

However, analysts caution against reading too much into these numbers. Some revenue may come from users who forgot to cancel auto-renewals. Others might be new paying customers attracted by the brand exposure. And with OpenAI and Google launching similar carrier deals, Perplexity is the first to face the real test: can free users be converted into paying ones?

As more Indian users approach their expiration dates, the industry is watching closely. Will they pay up or walk away? The answer will shape how AI companies approach emerging markets.

Key Points

  • Perplexity's Airtel partnership led to a 625% surge in downloads and a peak of 22 million monthly active users in India.
  • Despite a 90% drop in downloads after the free period, revenue increased by 60% in the following months.
  • Analysts warn that some revenue may come from auto-renewals, not voluntary conversions.
  • OpenAI and Google have launched similar carrier deals, making Perplexity's results a bellwether for the industry.