OpenAI's India user base doubles as it becomes largest global market

A surge in weekly active users

India has officially emerged as the largest global market for ChatGPT when measured by weekly active users. According to Prabhjeet Singh, the managing director of OpenAI India, the local user base has doubled since the start of this year.

This rapid expansion suggests that the public is moving past the initial curiosity phase of generative AI. Singh noted that the growth reflects how people are beginning to find relevance and deep use cases for the technology in their daily lives.

The scale of this growth is significant because it places India at the forefront of global AI adoption. It highlights a shift where the tool is no longer just a novelty but a functional part of the digital ecosystem for millions of people.

From pilots to production scale

The nature of how businesses use AI in India is undergoing a fundamental transformation. Singh observed a real shift from the early days of simple pilots and demos, which were common late last year and early this year, toward scaled adoption.

Enterprises are now looking for production-scale deployment, meaning they are integrating AI into their core workflows rather than just testing it in isolated environments. This transition is a key indicator of the technology's maturity in the corporate sector.

To support this shift, OpenAI is focusing on deeper localization and ecosystem investments. This includes improving the product experience, forming new partnerships, and working more closely with both the government and the local community.

Payments and infrastructure

One of the most immediate changes for users in India will likely involve how they pay for AI services. OpenAI is expected to make specific announcements regarding UPI and other payment methods over the coming weeks.

Integrating with UPI, India's instant payment system, is a critical step for making AI tools more accessible to a broader audience. By streamlining these transactions, OpenAI aims to reduce friction for both individual and enterprise customers.

Additionally, the company is actively engaging with government agencies to address security concerns. As AI agents become more autonomous, OpenAI is working to protect critical infrastructure from potential misuse.

The broader tech landscape

While OpenAI scales in India, other Indian tech companies are also seeing massive growth. For example, the ride-hailing startup Rapido has quadrupled its scale in just two years, reaching an annualized gross order value of $4 billion.

Rapido's success is tied to its expansion into mobility and food delivery, specifically through its zero-commission platform, Ownly. The company has grown from 100 cities to nearly 500, capturing an estimated 60% market share in several vehicle categories.

These stories together paint a picture of a rapidly maturing Indian tech scene. Whether through AI adoption or mobility services, the region is seeing a move toward high-volume, production-ready platforms that serve millions of users.

Regulatory and investment shifts

The rapid growth of AI and tech in India is also attracting significant regulatory attention and investment shifts. The government is currently considering granting enforcement powers to Cert-In, the nodal cybersecurity agency, to combat AI-driven cyberattacks.

In the venture capital space, investors are also pivoting their focus. For instance, Vinay Singh of Fireside Ventures is exiting the firm to explore the frontiers of agentic commerce, a term for commerce driven by autonomous AI agents.

These movements suggest that the next phase of growth will be defined by how well companies can navigate regulation. Success will depend on balancing rapid expansion with the security and infrastructure requirements of a massive, growing user base.

Fintech revenue and VC structure

The fintech landscape in India is also preparing for significant shifts in how payment systems generate revenue. MobiKwik is currently anticipating that the proposed introduction of a merchant discount rate on Unified Payments Interface transactions could add at least Rs 100 crore to its payment revenue. This move is part of a broader strategy by the company to improve monetization across both consumer and merchant payment categories.

Simultaneously, the venture capital environment is providing the structural support for these growing industries. Fireside Ventures operates with a team of four senior partners and 12 principals and vice-presidents who possess specialized expertise in areas such as brand building, distribution channels, finance, HR, and ESG. This diverse professional background helps the firm manage its various investments and support the next generation of consumer brands.

The firm's influence is evident in its extensive portfolio, which has supported more than 65 consumer brands across four different funds since 2017. Notable companies that have received backing from the firm include Mamaearth, Boat, Yoga Bar, Slurpp Farm, Pilgrim, and Underneat. This history of supporting diverse consumer-facing brands highlights the investment trends currently shaping the Indian market.