Perplexity Charts a Bold Path in India to Challenge OpenAI

Perplexity, a rising AI-powered search platform, is charting an aggressive expansion into India as part of its strategy to compete with OpenAI on the global stage. While OpenAI has a stronghold in the US, Perplexity aims to capture India's vast, fast-growing audience by embedding itself deeply into the country's tech ecosystem.

Perplexity Powers Up with Airtel Partnership

The company recently signed an exclusive deal with Bharti Airtel, India's second-largest telecom operator. Under this partnership, Airtel will provide its 360 million subscribers a complimentary year of Perplexity Pro—a premium service typically valued at $200—cementing Perplexity's reach across one of the world's largest mobile user bases. The exclusivity of this offer prevents competing telecom firms in India from offering similar access, giving Perplexity a considerable edge in a dynamic market.

Accelerated Adoption and User Growth

India has quickly become a growth engine for Perplexity. According to Sensor Tower data, the company’s app downloads in India swelled by 600% year-over-year in Q2, totaling 2.8 million downloads. In comparison, OpenAI’s ChatGPT app also surged—by 587%—reaching 46.7 million downloads. Perplexity’s monthly active users (MAUs) rose 640% to 3.7 million, outpacing ChatGPT’s growth rate (though ChatGPT still leads in absolute numbers at 19.8 million MAUs).

Strategic Partnerships Beyond Airtel

The move with Airtel is just one facet of Perplexity’s global expansion. Earlier, the startup struck a deal with Indian fintech giant Paytm, integrating its search AI into an app used by over 500 million people. Globally, it has forged alliances with more than 25 telecom operators, including SoftBank in Japan and SK Telecom in South Korea, building a web of distribution channels that OpenAI’s direct-to-consumer model has yet to match.

Leadership, Investment, and India’s AI Ecosystem

Perplexity’s CEO, Aravind Srinivas, has publicly demonstrated his commitment to the Indian market. He announced both a search for local leadership and a $1 million funding initiative directed at fostering AI innovation in India, responding to the country’s "overwhelming" tech talent interest. The company is exploring further educational partnerships, aiming to put its tools in the hands of Indian students to boost adoption and grow its user base from the ground up.

Deep Founder Analysis

Why it matters

For startups, Perplexity’s India push signals a shift from mature, saturated Western markets toward high-growth, population-rich regions where digital adoption is accelerating. The willingness of a Silicon Valley AI startup to localize deeply—securing exclusive telecom partnerships and embedding with fintech giants—illustrates a playbook any ambitious SaaS or AI founder should study. Rapid scaling in emerging markets may soon determine the next phase of global tech competition.

Risks & opportunities

The risk for Perplexity—and any startup betting big on India—is monetization. Indian consumers are famously price-sensitive. While user base growth is impressive, turning free users into paying customers is a perennial challenge. However, the scale and engagement rates provide unique data and experimentation advantages. Startups willing to tailor pricing, localization, and value propositions for India could outflank global giants slow to adapt—much as WhatsApp and Xiaomi did in previous tech waves.

Startup idea or application

This surge in AI usage highlights a white space for vertical AI platforms tailored to the Indian market. An edtech startup could leverage partnerships with telecoms and fintech platforms to offer AI-powered tutoring, research, and productivity tools at tiered pricing, leveraging mass distribution first and monetizing later through add-ons or professional modules.

Revenue and Monetization Challenges

Despite extraordinary user growth, revenue generation remains a challenge, especially in India. Worldwide, ChatGPT’s in-app purchases soared to $773 million (a 731% year-over-year jump), while Perplexity reached just $8 million, despite a 300% increase. In India alone, ChatGPT’s in-app sales hit $9 million in Q2, but Perplexity has yet to register significant paid conversions. Exclusive deals like Airtel’s may help seed future paying subscribers, but sustainability hinges on converting free users over time.

Market Signals: Competition and Future Outlook

India’s dynamic tech landscape is drawing major global AI players. Even Google has rolled out AI-powered search features in India before other regions, underscoring the country's strategic priority. The comparatively small number of local AI search startups creates an opening for Perplexity, but the competition will intensify as digital transformation deepens. To convert its current user momentum into lasting investor confidence and revenue, Perplexity will need to continue innovating, localizing, and adapting to the unique demands of the Indian consumer market.

Related: India's Quantum Leap: How QpiAI Is Powering a New Era in Computing | Tesla Prepares to Launch Electric Vehicle Sales in India: What It Means for Startups and the EV Market

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