Perplexity Sees India as a Key Strategic Asset in the Rivalry with OpenAI

While OpenAI maintains a stronghold in the U.S. market, Perplexity is taking a different path by gradually building its presence in India, targeting the upcoming wave of AI adoption. This search-focused AI startup is rapidly gaining millions of users in the second-largest internet and smartphone market globally, paving the way for widespread growth.

Recently, Perplexity formed a partnership with Bharti Airtel, India’s second-largest telecom provider after Reliance Jio, to offer a free 12-month Perplexity Pro subscription—normally priced at $200—to all 360 million Airtel customers. Airtel confirmed to TechCrunch that this agreement is exclusive, prohibiting other telecom companies in India from offering similar access to Perplexity’s services.

This collaboration with Airtel represents a significant milestone in Perplexity’s global expansion efforts, which include collaborations with over 25 telecom firms worldwide, such as those with SoftBank in Japan and SK Telecom in South Korea. The emphasis is on volume, as India, being the most populous country, offers a mass market that the San Francisco-based startup cannot find elsewhere.

Perplexity is already experiencing notable growth in India. In Q2, downloads spiked by 600% year-over-year, reaching 2.8 million, according to exclusive Sensor Tower data provided to TechCrunch. Comparatively, OpenAI’s ChatGPT saw a 587% increase, hitting 46.7 million downloads during the same period.

This upward trajectory is mirrored in active users; Perplexity’s monthly active users (MAUs) in India surged by 640% year-over-year in Q2, while ChatGPT’s MAUs grew by 350%. Sensor Tower identified India as Perplexity’s largest MAU market in the last quarter, though ChatGPT still retains a significant edge in absolute numbers, with 19.8 million MAUs versus Perplexity’s 3.7 million.

Building on previous collaborations, Perplexity has been proactive in leveraging India’s user base to outpace Western markets, where OpenAI dominates paid subscriptions. Earlier this year, the company teamed up with Indian fintech giant Paytm to offer its AI-driven search through the Paytm app, which has over 500 million downloads and ranks among the top three apps on India’s Unified Payment Interface network, handling over 1.2 billion transactions valued at over ₹1,34,000 crores (approximately $15.6 billion).

Perplexity CEO Aravind Srinivas is also making direct moves to grow in India. In January, he announced intentions to hire an Indian executive, a plan he later postponed due to overwhelming interest. He subsequently committed to a $1 million investment and five hours a week to assist a group focusing on AI development in India.

The company is also considering extending its AI search engine to Indian students to broaden its outreach, as per sources who spoke to TechCrunch.

A critical reason for Perplexity’s focus on India is the relatively limited number of local AI startups, particularly in the AI search sector. Furthermore, the country boasts a vast and engaged population of tech-savvy users—an environment so promising that it has prompted Perplexity’s rival, Google, to introduce AI-based search features like AI Mode and AI Overviews in India ahead of many other regions.

However, monetizing this large user base remains a daunting challenge. Perplexity lags behind ChatGPT in global revenue significantly, even though both platforms have set the same starting price of $20 per month. In Q2, ChatGPT’s in-app purchase revenue soared by 731% year-over-year to $773 million, while Perplexity only achieved a 300% increase, totaling $8 million, according to Sensor Tower.

The revenue challenge is particularly acute in India, where consumers are known for their price sensitivity. Nevertheless, there are gleaming signs of hope; ChatGPT reported an 800% year-over-year spike in in-app purchases in India, reaching $9 million during Q2. While Perplexity has yet to realize substantial in-app revenue from India, it has significant potential to grow its paid subscriber count in the country. Initiatives such as the Airtel partnership could temporarily boost Perplexity’s subscriber numbers.

Strategic alliances in markets like India could capture the attention of investors interested in user growth and geographic diversification. However, to convert interest into sustainable long-term backing, the startup must prove its ability to generate revenue from its expanding user base.

Srinivas did not respond to requests for comment.