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Perplexity’s Path to AI Dominance: Strategic Expansion in India

July 18, 2025

Perplexity, a search-focused AI startup, is quietly making big moves in India as it sets its sights on challenging OpenAI’s lead. By teaming up with Bharti Airtel—India’s second-largest telecom—Perplexity is offering all 360 million Airtel customers a complimentary 12‑month subscription to its Pro service, ensuring they get an exclusive early experience.

This Airtel deal is a key part of Perplexity’s broader global expansion, which already includes more than 25 telco partnerships, such as those with SoftBank in Japan and SK Telecom in South Korea. India’s enormous population and dynamic internet user base present growth opportunities that far exceed those in Western markets.

According to Sensor Tower, Perplexity’s downloads in India jumped by 600% in Q2, reaching 2.8 million. Meanwhile, although OpenAI’s ChatGPT leads with 19.8 million monthly active users as opposed to Perplexity’s 3.7 million, the startup’s rapid growth in the region remains impressive.

Further bolstering its local presence, Perplexity has partnered with Paytm—a major Indian fintech firm—to integrate its AI capabilities into an app with over 500 million downloads. CEO Aravind Srinivas has shown his commitment by investing $1 million and dedicating five hours a week to support AI initiatives in India. Despite pausing the search for a local executive in response to overwhelming demand, the startup remains focused on deepening its market reach.

India’s tech-savvy audience and a relatively sparse field of local AI startups create an ideal environment for innovation. Even Google has rolled out AI-enhanced search features in the region ahead of other markets, underscoring India’s potential. That said, while monetisation remains a challenge—Perplexity earned $8 million in Q2 compared to ChatGPT’s $773 million—the strategic Airtel partnership could boost its subscriber base significantly.

Ultimately, turning this expanding user base into sustainable revenue will be key for Perplexity as it looks to secure long-term investor support.

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