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Perplexity's Free India Trial Pays Off: Revenue Up 60%

When Perplexity teamed up with Indian telecom giant Airtel in July 2025 to hand out free Pro subscriptions, many wondered if the gamble would pay off. The offer gave roughly 360 million Airtel users access to a service typically priced at $200 for a full year. Now, as the first batch of freebies winds down, the numbers are starting to tell a compelling story.

According to Sensor Tower, the initial impact was explosive. In the first month alone, Perplexity's downloads in India hit 5.9 million—a jaw-dropping 625% jump from the previous month. Over the seven months the promotion ran, total downloads reached about 56 million, more than nine times the same period a year earlier. Monthly active users surged from 8.9 million in July to a peak of around 22 million by October.

But what happens when the free ride ends? Downloads inevitably cooled off, dropping to 3.3 million between February and July 2026—a decline of over 90% compared to the promotional peak. Yet, the user base didn't crumble. Monthly active users held steady at roughly 14 million in July, still more than five times the average from the first half of 2026.

The real headline, though, is revenue. Sensor Tower estimates that between February and mid-August 2026, Perplexity's in-app purchases and subscription revenue in India grew by about 60% compared to the promotional period. Daily in-app purchase revenue from July 18 to August 12 was 9% higher than the previous 30 days and 27% above the first-half average. Appfigures paints a similar picture: monthly net revenue in India climbed from about $34,000 in January 2025 to $156,000 in July 2026, with the first seven months of 2026 bringing in $878,000—a 16% year-over-year increase.

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Of course, not all that glitters is gold. The data doesn't confirm that every dollar came from Airtel users who chose to stick around. Since Pro subscriptions auto-renew by default, some revenue might come from users who simply forgot to cancel. The promotion also boosted brand visibility, potentially attracting paying users who weren't part of the Airtel deal. As more Airtel users hit the renewal mark, the true conversion rate will become clearer.

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This experiment is part of a larger trend. OpenAI and Google have also dabbled with free or low-cost AI subscriptions in India, making the country a testing ground for turning scale into sustainable revenue. For Perplexity, the early returns are promising, but the long-term payoff hinges on whether those free users see enough value to open their wallets.

Key Points

  • Perplexity's free Airtel promotion led to a massive surge in downloads and active users in India.
  • After the promo ended, downloads fell sharply, but monthly active users remained significantly above pre-promo levels.
  • Revenue from in-app purchases and subscriptions rose 60% compared to the promotional period.
  • Some revenue may come from auto-renewals or non-Airtel users, so true conversion rates are still uncertain.
  • India is becoming a key battleground for AI companies testing free-to-paid strategies.