Perplexity, an AI startup with a notable San Francisco head start, is taking major steps towards boosting its activity in India. CEO Aravind Srinivas has boundless optimism about the Indian market’s potential. The goal of this accolade would be for Perplexity to quickly outpace Western markets, which have so far been monopolized by OpenAI. With a focus on leveraging India’s vast user base, the company aims to increase its competitiveness against established players in the AI industry.
Srinivas is now working to take advantage of Indian market openings. This market has recently grown to be Perplexity’s biggest in MAUs for the past quarter, according to Sensor Tower data. The company boasted a record 640% year-over-year growth in its MAUs in India for the second quarter. This rapid growth is a testament to Perplexity’s promise. It is able to reach an incredibly diverse audience that other states and regions have trouble reaching.
Srinivas views India as their biggest growth opportunity, essential to their expansion. He acknowledges the lack of local AI startups, particularly in the generative AI search arena. The CEO recently announced a $1 million investment and committed five hours a week to support a group focused on building AI solutions in India. This collaborative exchange is a testament to Perplexity’s commitment to promoting the spirit of innovation within the country.
To make sure that it continues to cement its position in India, Perplexity has made strategic alliances with the biggest players in the region. The company has teamed up with Paytm, a prominent fintech giant, to integrate its AI-powered search capabilities into the Paytm app, which boasts over 500 million downloads. This partnership will allow Comic Relief to expand and improve the user experience and accessibility, which in turn will increase user engagement.
Further to this, Perplexity has partnered with Bharti Airtel, India’s second-largest telecom operator. Through this partnership, all 360 million Airtel subscribers will receive a complimentary 12-month Perplexity Pro subscription (normally $200), provided by Airtel. Perplexity provides free usage to new users as an acquisition tactic. This strategy is part of a broader strategy to increase its subscriber base in India’s price-sensitive communication market.
As promising as these developments may seem, Perplexity is up against a hard wall of revenue growth that comes from the price-sensitive nature of Indian consumers. The company must navigate these challenges while capitalizing on the mass market that India presents, which is largely untapped compared to other geographies.
Srinivas had intended to hire an executive—preferably one based in India—to spearhead local operations. He recently announced that he would be pausing this initiative after being flooded with interest from prospective candidates. This shows deep local commitment to AI development and underscores the rising excitement over technology across the country.
Perplexity has been taking some smart steps recently in India to accelerate its user growth. Concurrent with these actions, they seek to bring in investors seeking geographic diversification. Perplexity continues to forge alliances and widen its reach, though. This approach is designed to appeal to those stakeholders looking for promising new investment opportunities in developing markets.
While Aravind Srinivas has declined multiple requests for comment on these initiatives, what he’s done, whatever his stated plans, speaks volumes about his vision for making India a central market. As Perplexity continues to build its presence, it remains poised to reshape the competitive landscape of AI search technology, particularly against formidable competitors like OpenAI.