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Funding · December 17, 2024

Perplexity raises $500M, rides shopping ads to a $9B valuation

The citation-first AI search engine closed a new round led by Institutional Venture Partners. Shopping-sidebar ads and citation-driven merchant traffic are two reasons the valuation tripled in a year.

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What happened

Perplexity closed a $500M Series C at a $9B valuation, led by Institutional Venture Partners with participation from existing investors. The company crossed a $50M annualised revenue run-rate heading into Q4, up from under $20M earlier in the year.

The revenue story is largely driven by two things: paid Pro subscriptions (growing steadily), and the new shopping-answer surface — where Perplexity renders product cards with direct merchant links in the answer itself. Merchants cited in those cards see click-through from a qualified intent source.

Why it matters to Shopify merchants

Perplexity is the citation-first AI engine — every answer names its sources, and merchant links are first-class citizens of the answer surface. For Shopify merchants, ranking in Perplexity's citation graph is a cleaner direct-traffic channel than any other AI assistant today.

The $9B valuation reinforces that investors believe answer-native shopping will steal share from Google Shopping and Amazon search. The money goes into retrieval quality and merchant-surfacing. Stores that show up in the Perplexity citation set today are in the set that benefits as Perplexity scales.

Tactically, merchants should focus on two things: making sure their llms.txt and AI sitemap are clean (Perplexity respects both), and making sure their product pages carry the specific-number density Perplexity's answer model rewards. Vague product copy doesn't get cited.

Perplexity's model is to be the citation layer of the open web. That works best when merchants treat their catalog as publicly retrievable, not as a locked garden.

Aravind Srinivas, CEO — Perplexity

Three questions, answered

How do I get my Shopify store cited by Perplexity?
Three things move the needle fastest: publish a clean llms.txt pointing to your best product hubs, emit Product + Offer JSON-LD on every PDP, and rewrite vague product copy with specific numbers and direct comparisons. Surfient's GEO Audit scores each of these.
Does Perplexity pay for citations?
No — citations are organic. Perplexity does run shopping ads in some answer surfaces, but the organic citation set is selected by the retrieval model, and pay-for-placement is not a channel.
Is Perplexity traffic worth chasing compared to Google?
Per session, Perplexity-referred traffic converts higher in early data — the intent is further down the funnel. The volume is lower than Google today, but rising fast. Treat it as a second-order channel where conversion rates outweigh the volume gap.