Perplexity: Revenue Increase in India Following Airtel's Free Offer

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Key Takeaways

1In India, Perplexity's in-app revenues and subscriptions increased by about 60% between February and mid-August compared to the period when the Airtel offer was launched.

2After the claims closure in January, downloads in India fell to 3.3 million between February and July, which is over 90% less than the previous six months.

3The agreement launched in July 2025 offered 12 months of Perplexity Pro (approximately $200) to Airtel's 360 million customers.

💡Why it matters — This case provides an initial test of the ability of extended free offers to translate into revenue after the year has passed, even if the exact source of this revenue remains undetermined.

In India, in-app spending related to Perplexity is on the rise, even as downloads have declined following the end of Airtel's free offer. Data from Sensor Tower and Appfigures indicate increasing revenues, but do not allow for the identification of voluntary conversions. This pilot case comes as other AI players are also testing long-term free subscriptions in the Indian market.

In India, spending increases despite a drop in downloads

According to Sensor Tower, between February and mid-August, in-app purchases and subscriptions related to Perplexity in India increased by about 60% compared to the period when the Airtel offer was active. From July 18 to August 12, average daily revenues exceeded the previous 30 days by 9% and remained 27% above the average for the first half of 2026. These trends suggest that some users may be willing to pay after a free period, without confirming deliberate conversions.

The terms of the offer complicate the analysis: free subscriptions were set up for automatic renewal, and users had to unsubscribe to avoid being charged. It is therefore possible that part of the increase comes from users who did not cancel in time. Sensor Tower indicates it cannot distinguish between involuntary renewals and active payment choices, nor isolate former Airtel beneficiaries from other paying customers.

On the net mobile revenue side, Appfigures notes a significant increase: approximately $34,000 in January 2025, $70,000 in December, and then $156,000 in July 2026. In the first seven months of 2026, Perplexity generated approximately $878,000 in India, which is 16% more than the total for 2025. Ariel Michaeli from Appfigures warns, however, that this growth should not be solely attributed to former Airtel beneficiaries: the visibility of the promotion may have also attracted paying users who were not part of the free distribution.

Usage remains high, although down from the peak

The number of monthly active users peaked at 22 million in October. In July, it was still nearly 14 million, which is 37% lower than the peak, but more than five times the average of about 2.6 million recorded during the first half of 2025. Previously, the monthly audience had more than doubled to reach 8.9 million in July.

For Abe Yousef, a senior analyst at Sensor Tower, usage after the promotion has remained resilient. He also emphasizes that Perplexity has significantly more users in India than during the six months preceding the operation.

An acquisition boom linked to the offer, followed by a sharp decline

The launch of the offer triggered a massive influx: 5.9 million downloads in July 2025 in India, representing a +625% increase in one month, more than the 5.4 million accumulated over the entire first half. Over the seven months the offer was active for newcomers, Sensor Tower estimates that there were 56 million downloads, more than nine times the previous seven-month period.

After the claim period closed in January, the momentum slowed significantly: 3.3 million downloads were recorded between February and July, a drop of over 90% compared to the previous six months. According to Appfigures' data, the initial surge proved to be specific to Perplexity: in the week leading up to the launch, there were about 11,200 downloads per day, which jumped to nearly 223,000 daily during the first week, and then to about 305,000 between mid-September and mid-October, while ChatGPT and Claude showed a generally stable trend.

What the Airtel deal included: 12 months of Pro for 360 million subscribers

Sealed in July 2025 with the second-largest Indian operator, the deal offered 12 months of Perplexity Pro, valued at approximately $200, to Airtel's 360 million customers. The opportunity to claim the subscription ended on January 16, with each free access lasting 12 months from activation. The first beneficiaries began to reach the end of their free period last month.

India, a key but challenging market, attracts long-term free offers

With over a billion internet subscribers and more than 700 million smartphone users, India is the second-largest mobile market globally and already the leading market for downloads of generative AI applications. However, this volume remains difficult to convert into revenue. Several AI companies are willing to trade short-term revenue for user acquisition in this price-sensitive context, with the stated goal of eventually turning them into paying customers.

After Perplexity, OpenAI made its ChatGPT Go plan free for a year in August 2025, and Google offered AI Pro at no cost for 18 months to eligible Reliance Jio users. The Perplexity deal, which preceded these initiatives by several months, serves as an early test: its beneficiaries are among the first major groups to cross the threshold between free access and potential billing. For now, the data do not indicate how many will pay at the end of the year of access; other cohorts will reach their renewals in the coming months. Perplexity did not respond to a request for comment.