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Perplexity's data indicates that its aggressive user acquisition strategy in India successfully converted millions of trial users into paying subscribers even after the promotional period with Airtel concluded. This case study highlights a critical metric for AI product teams: whether bundled distribution can sustain long-term revenue without perpetual subsidies, particularly in high-volume emerging markets like India where download costs are low but conversion durability remains unproven at scale.
Perplexity’s free AI offer left it with millions more users in India
Perplexity's India revenue rose about 60% after the Airtel offer ended for new users, even as downloads declined.
Perplexity spent the past year running one of the biggest AI growth experiments, giving its premium service away to customers of Indian telecom giant Airtel. Now, as the earliest of those free subscriptions expire, the results are starting to emerge, offering an early test of whether bundling paid AI services can create lasting users and revenue after the giveaway ends. In July 2025, Perplexity partnered with Airtel, India’s second biggest telecom operator, to offer a free 12-month Perplexity Pro subscription, normally worth about $200, to the Indian carrier’s 360 million customers. New redemptions ended on January 16. However, because subscribers retained Pro for a year from activation, the earliest users began reaching the end of their free access last month and…
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