Athira Sethu
Kochi, 11 September 2025
Perplexity, a Google competitor AI search engine, has raised $200 million in fresh funds. The company’s valuation is now at $20 billion, citing a report by The Information.
The funding follows only two months since Perplexity raised $100 million valuation of $18 billion. The company has raised a total of $1.5 billion since it was established three years ago, per PitchBook data.
It is not yet known who led this newest round of investment. Still, back in February, Perplexity invested $500 million in a venture capital-led round that valued the company at $14 billion and was said to be extended in July.
Perplexity is growing rapidly and generating robust top-line revenue. According to a source close to the company, its annual recurring revenue (ARR) stands at nearly $200 million. In an interview last month, Business Insider was informed by a company spokesperson that ARR had already exceeded $150 million.
Perplexity is emerging as a robust challenger to Google in the search space. Unlike search engines, Perplexity offers straightforward, conversational answers driven by artificial intelligence.
The company hit the headlines in August by making a bid to acquire Google’s Chrome browser for $34.5 billion. The bid came after the U.S. Department of Justice floated the idea of Google selling Chrome because of antitrust issues. But this month, a judge has said that Google will not be compelled to dissolve its business, enabling it to retain Chrome.
Even with Google’s ongoing reign, Perplexity is regarded as one of the most promising contenders in the AI search arena. With robust investor backing and quickly expanding revenue, it is establishing itself as a viable force in the market.
The firm’s recent funding round indicates that investors believe in the future of Perplexity as more consumers make use of AI-driven tools for quicker, wiser search experiences.
