Perplexity's free AI partnership in India yields millions of new users despite post-promotion decline

Perplexity executed a major user acquisition strategy in India through a partnership with telecom operator Airtel, offering free premium subscriptions to 360 million customers starting in July 2025. The promotional period resulted in 5.9 million app downloads in the first month alone, representing a 625% surge compared to June. Over the seven-month availability window, the offer drove 56 million total downloads, nine times greater than the same period prior to the deal. The campaign generated significant user engagement, with monthly active users climbing to 22 million by October before moderating as renewal deadlines approached. After new redemptions ceased in January 2026, download activity fell sharply, declining 90% in subsequent months. However, the user base proved more resilient than the download figures suggested, stabilizing at 14 million monthly active users by mid-year, still substantially higher than pre-promotion levels. Remarkably, in-app revenue increased despite the download pullback. Income rose approximately 60% after the promotional window closed, and continued accelerating as early subscribers faced renewal charges. Average daily revenue in late July and early August reached 27% above first-half 2026 averages. While attribution remains unclear—some conversions may reflect auto-renewal charges rather than deliberate purchases—the data indicates the strategy successfully converted at least a portion of free users into paying customers. The initiative now serves as a case study for broader industry efforts by OpenAI, Google, and others to establish foothold in India's large but price-sensitive AI market.