Perplexity AI has partnered with Bharti Airtel to offer free Pro subscriptions to all 360 million Airtel customers. The partnership announcement came on July 17, 2025, when Bharti Airtel revealed that all its customers across mobile, Wi-Fi, and DTH services would receive a free 12-month Perplexity Pro subscription. This Pro version typically costs ₹17,000 annually in India, equivalent to about $200 globally.
Customers can activate their subscriptions through the Airtel Thanks app between July 17, 2025, and January 17, 2026. This deal marks Perplexity’s first major telecom partnership in India and represents one of the largest AI service giveaways in the country’s history.
“This first of its kind Gen-AI partnership in India is focused on helping our customers navigate the emerging trends in the digital world with confidence and ease,” said Gopal Vittal, Vice Chairman & Managing Director of Bharti Airtel.
Financial Gamble Could Cost Billions
Industry analysts are closely watching the financial implications of this massive giveaway. According to calculations shared on social media, if users engage with the service at just one query per day, the computational costs could reach anywhere from $700 million to $3.6 billion annually for Perplexity.
However, the company is betting on conversion rates. If even 1% of the 360 million users convert to paid subscriptions after the free year ends, this could generate approximately $720 million in annual recurring revenue for Perplexity.
The startup generated roughly $34 million in revenue in 2024, largely from its $20-per-month Pro subscriptions. This partnership could potentially multiply that figure if conversion rates meet expectations.
India Becomes Key Battleground Against OpenAI
Perplexity’s aggressive expansion in India represents a strategic action to compete with OpenAI’s dominance in Western markets. The company is already seeing remarkable growth in the country, with downloads surging 600% year-over-year to 2.8 million in Q2 2025.
Monthly active users in India increased by 640% year-over-year, making India the largest market by monthly active users for Perplexity. The company now has 3.7 million monthly active users in India, compared to ChatGPT’s 19.8 million.
Perplexity CEO Aravind Srinivas has personally invested in India’s AI ecosystem, announcing a $1 million investment and committing five hours per week to support AI development in the country. He also planned to hire an Indian executive but put the search on hold after receiving an “overwhelming” response.
Pro Features Target Professional Users
The free Perplexity Pro subscription includes several advanced features that differentiate it from the basic version:
- Over 300 Pro searches per day (compared to 5 for free users)
- Access to advanced AI models including GPT-4 and Claude
- Deep research capabilities
- Image generation tools
- File upload and analysis features
- Perplexity Labs for creative projects
These features target professionals, students, and power users who need more sophisticated AI assistance for research, content creation, and complex problem-solving tasks.
App Store Rankings Surge After Partnership
The immediate impact of the Airtel partnership became visible in app store rankings. Following the announcement, Perplexity climbed to the top position on India’s Apple App Store, overtaking ChatGPT for the first time.
This surge in downloads and user engagement demonstrates the market’s appetite for AI-powered search tools in India. The partnership has effectively eliminated the primary barrier to adoption in a notoriously price-sensitive market.
Telecom Strategy Expands Globally
The Airtel partnership fits into Perplexity’s broader strategy of partnering with telecom operators worldwide. The company has similar arrangements with more than 25 telecos globally, including recent partnerships with SoftBank in Japan and SK Telecom in South Korea.
These partnerships provide Perplexity with direct access to millions of potential users while offering telecom companies a way to differentiate their services with AI capabilities. The Airtel deal is exclusive in India, meaning no other telecom operator can offer similar Perplexity benefits to their customers.
Market Positioning Against Google
Perplexity’s expansion comes at a time when Google is also focusing on AI-powered search features in India. Google has already launched AI Mode and AI Overviews in India ahead of many other markets, recognizing the country’s importance for AI adoption.
The competition is intensifying as both companies see India’s tech-savvy population and growing internet penetration as crucial for their AI strategies. With over 650 million people using AI apps globally, India represents a significant portion of this market.
Revenue Conversion Remains Key Challenge
While the partnership brings massive user exposure, converting free users to paid subscribers remains Perplexity’s biggest challenge. The company has generated minimal in-app revenue from India so far, unlike ChatGPT which saw an 800% year-over-year increase in Indian in-app purchases to $9 million in Q2 2025.
Perplexity’s global in-app purchase revenue reached $8 million in Q2 2025, a 300% increase year-over-year. However, this still lags significantly behind ChatGPT’s $773 million in quarterly revenue.
The success of the Airtel partnership will ultimately be measured by how many users continue using Perplexity Pro after the free year ends and how many convert to paid subscriptions. This conversion rate will determine whether the initial investment pays off for the AI startup.
Strategic Implications for AI Industry
The Perplexity-Airtel partnership represents a new model for AI companies looking to scale quicklyin emerging markets. Rather than competing solely on product features, companies are using strategic partnerships to overcome adoption barriers.
This approach could inspire other AI startups to seek similar telecom partnerships, potentially accelerating AI adoption across developing markets. The partnership also demonstrates how traditional telecom companies can add value to their services through AI integrations.
The success or failure of this massive experiment will likely influence how other AI companies approach market expansion in price-sensitive regions. For Perplexity, India represents either a pathway to global relevance or a costly lesson in market expansion strategy.
