Perplexity’s Indian growth experiment faces the revenue test

The partnership with India’s second-largest telecom operator, Airtel, catalyzed a massive surge in market share. In July 2025 alone, the app recorded 5.9 million downloads, a 625% increase that propelled monthly active users to a peak of 22 million by October. While new downloads plummeted by over 90% after the promotional window closed in January, the user base remained sticky. Monthly active users stood at roughly 14 million in July, nearly six times higher than the levels seen before the giveaway began.

Despite the decline in new sign-ups, revenue indicators suggest the strategy may be yielding long-term dividends. Sensor Tower data shows that in-app purchase revenue in India rose 60% between February and mid-August compared to the promotional period. Furthermore, daily revenue from mid-July to mid-August outperformed the 2026 first-half average by 27%. Whether these gains stem from deliberate customer loyalty or the friction of auto-renewal remains unclear. As rivals like OpenAI and Google implement similar distribution deals in the region, Perplexity serves as the primary case study for whether AI services can successfully convert India’s price-conscious consumers into a permanent, paying audience.