Perplexity sees India as a shortcut in its race towards OpenAI by way of NewsFlicks

Whilst OpenAI has cemented its lead within the U.S., Perplexity is taking a unique path — quietly increasing into India to compete within the subsequent segment of AI adoption. The hunt-focused AI startup is abruptly including tens of millions of customers on the planet’s second-largest web and smartphone marketplace, positioning itself for mass-market scale.

This week, Perplexity partnered with Bharti Airtel, India’s second-largest telecom operator after Reliance Jio, to provide a loose 12-month Perplexity Professional subscription — generally price $200 — to all 360 million Airtel subscribers. Airtel showed to TechCrunch that the deal is unique, which means no different telco within the nation can be offering Perplexity’s services and products, together with loose get admission to, to their subscribers.

The Airtel partnership is one among Perplexity’s most important strikes but in an international enlargement technique that incorporates partnerships with greater than 25 telcos globally, together with the ones just lately introduced with SoftBank in Japan and SK Telecom in South Korea. It comes right down to quantity. India, the arena’s maximum populous nation, brings a mass marketplace that the San Francisco-based startup won’t in finding in different geographies.

Perplexity is already gaining main traction within the nation. In Q2, Perplexity’s downloads in India surged 600% year-over-year to two.8 million, in step with Sensor Tower knowledge shared solely with TechCrunch. Compared, OpenAI’s ChatGPT noticed a 587% build up, attaining 46.7 million downloads in the similar duration.

The expansion pattern prolonged to energetic customers as smartly: Perplexity’s per thirty days energetic customers (MAUs) in India larger by way of 640% year-over-year in Q2, whilst ChatGPT’s MAUs grew by way of 350%. India used to be additionally the most important marketplace by way of MAUs for Perplexity within the closing quarter, consistent with Sensor Tower. Then again, ChatGPT maintained an important lead in absolute numbers, with 19.8 million MAUs as opposed to 3.7 million for Perplexity.

Development on previous partnerships, Perplexity has been running to leverage India’s person base to leapfrog Western markets, the place OpenAI dominates paid subscribers. Previous this 12 months, Perplexity partnered with the Indian fintech large Paytm to provide get admission to to its AI-powered seek in the course of the Paytm app, which has over 500 million downloads and is likely one of the top-three apps at the Indian govt’s Unified Fee Interface community, processing over 1.2 billion transactions price over ₹1,34,000 crores (roughly $15.6 billion).

Perplexity CEO Aravind Srinivas has additionally taken direct steps to make bigger in India. In January, he introduced plans to rent an Indian govt within the nation, which he later placed on hang after receiving an “overwhelming” reaction. He additional introduced a $1 million funding and a dedication of 5 hours every week of his time to a gaggle construction AI in India.

The startup has additionally internally mentioned providing its AI seek engine to Indian scholars to develop its succeed in, resources advised TechCrunch.

One explanation why Perplexity perspectives India as a key expansion marketplace is the reasonably restricted collection of native AI startups, specifically within the AI seek area. On the identical time, the rustic has a big and energetic base of tech-savvy customers — a undeniable fact that has even triggered Perplexity’s archrival, Google, to release AI-powered seek options like AI Mode and AI Overviews in India forward of many different markets.

Monetizing that giant person base stays a problem. Perplexity nonetheless lags some distance in the back of ChatGPT globally in the case of earnings, whilst each be offering the similar $20-per-month beginning charge. In Q2, ChatGPT’s in-app acquire earnings international surged 731% year-over-year to $773 million, whilst Perplexity noticed a 300% build up, attaining $8 million, consistent with Sensor Tower.

The earnings problem is especially acute in India, the place shoppers are notoriously price-sensitive. Nonetheless, there are promising indicators. ChatGPT noticed an 800% year-over-year build up in in-app purchases to $9 million within the nation in Q2. Perplexity has no longer generated any notable in-app earnings from India, however the startup has room to make bigger its paid subscriber base thru India. Offers like the only with Airtel may just lend a hand Perplexity successfully build up its subscriber base, a minimum of within the brief time period.

Strategic partnerships in markets like India may just lend a hand Perplexity catch the attention of buyers who worth person expansion and geographic diversification. However to show that focus into long-term backing, the startup will want to display that it may convert its increasing person base into earnings.

Srinivas didn’t reply to requests for remark.