Perplexity Sees India As A Shortcut In Its Race Against Openai

While OpenAI has cemented its lead successful nan U.S., Perplexity is taking a different way — softly expanding into India to compete successful nan adjacent shape of AI adoption. The search-focused AI startup is quickly adding millions of users successful nan world’s second-largest net and smartphone market, positioning itself for mass-market scale.

This week, Perplexity partnered pinch Bharti Airtel, India’s second-largest telecom usability aft Reliance Jio, to connection a free 12-month Perplexity Pro subscription — usually worthy $200 — to each 360 cardinal Airtel subscribers. Airtel confirmed to TechCrunch that nan woody is exclusive, meaning nary different telco successful nan state tin connection Perplexity’s services, including free access, to their subscribers.

The Airtel business is 1 of Perplexity’s astir important moves yet successful a world description strategy that includes partnerships pinch much than 25 telcos globally, including those precocious announced pinch SoftBank successful Japan and SK Telecom successful South Korea. India, nan world’s astir populous country, brings a wide marketplace that nan San Francisco-based startup will not find successful different geographies.

Perplexity is already gaining awesome traction successful nan country. In Q2, Perplexity’s downloads successful India surged 600% year-over-year to 2.8 million, according to Sensor Tower information shared exclusively pinch TechCrunch. In comparison, OpenAI’s ChatGPT saw a 587% increase, reaching 46.7 cardinal downloads successful nan aforesaid period.

The maturation inclination extended to progressive users arsenic well: Perplexity’s monthly progressive users (MAUs) successful India accrued by 640% year-over-year successful Q2, while ChatGPT’s MAUs grew by 350%. India was besides nan largest marketplace by MAUs for Perplexity successful nan past quarter, per Sensor Tower. However, ChatGPT maintained a important lead successful absolute numbers, pinch 19.8 cardinal MAUs versus 3.7 cardinal for Perplexity.

Image Credits:Jagmeet Singh / TechCrunch

Building connected earlier partnerships, Perplexity has been moving to leverage India’s personification guidelines to leapfrog Western markets, wherever OpenAI dominates paid subscribers. Earlier this year, Perplexity partnered pinch nan Indian fintech elephantine Paytm to connection entree to its AI-powered hunt done nan Paytm app, which has complete 500 cardinal downloads and is among nan top-three apps connected nan Indian government’s Unified Payment Interface network, processing complete 1.2 cardinal transactions worthy complete ₹1,34,000 crores (approximately $15.6 billion).

Perplexity CEO Aravind Srinivas has besides taken nonstop steps to grow successful India. In January, he announced plans to prosecute an Indian executive successful nan country, which he later put connected clasp aft receiving an “overwhelming” response. He further announced a $1 cardinal investment and a committedness of 5 hours a week of his clip to a group building AI successful India.

Image Credits:Jagmeet Singh / TechCrunch

The startup has internally discussed offering its AI hunt motor to Indian students to turn its reach, sources told TechCrunch.

One logic Perplexity views India arsenic a cardinal maturation marketplace is nan comparatively limited number of section AI startups, peculiarly successful nan AI hunt space. At nan aforesaid time, nan state has a ample and progressive guidelines of tech-savvy users — a truth that has moreover prompted Perplexity’s archrival, Google, to motorboat AI-powered hunt features for illustration AI Mode and AI Overviews successful India up of galore different markets.

But monetizing that ample personification guidelines remains a challenge. Perplexity still lags acold down ChatGPT globally successful position of revenue, moreover arsenic some connection nan aforesaid $20-per-month starting price. In Q2, ChatGPT’s in-app acquisition gross worldwide surged 731% year-over-year to $773 million, while Perplexity saw a 300% increase, reaching $8 million, per Sensor Tower.

Image Credits:Jagmeet Singh / TechCrunch

The gross situation is peculiarly acute successful India, wherever consumers are notoriously price-sensitive. Still, location are promising signs. However, ChatGPT saw an 800% year-over-year summation successful in-app purchases to $9 cardinal successful nan state successful Q2. Perplexity has not generated immoderate notable in-app gross from India, but nan startup has room to grow its paid subscriber guidelines done India. Deals for illustration nan 1 pinch Airtel could thief Perplexity efficaciously summation its subscriber base, astatine slightest successful nan short term.

Strategic partnerships successful markets for illustration India could thief Perplexity drawback nan oculus of investors who worth personification maturation and geographic diversification. But to move that attraction into semipermanent backing, nan startup will request to show that it tin person its expanding personification guidelines into revenue.

Srinivas did not respond to requests for comment.