“UP Government and Puch AI have signed a ₹25,000 crore MoU to make Uttar Pradesh India’s first AI Pradesh,” stated Siddharth Bhatia, co-founder of Puch AI, during the announcement of the agreement on March 24, 2026.
The Memorandum of Understanding (MoU), signed with the Uttar Pradesh government, aims to establish a comprehensive AI ecosystem in the state. However, Chief Minister Yogi Adityanath emphasized that the MoU is non-binding, describing it as a preliminary step: “An MoU by Invest UP is a preliminary step before detailed due diligence and project evaluation gets done.”
Puch AI, a Bengaluru-based startup founded in 2025 by Bhatia and Arjit Jain, has gained traction in the Indian market, with over a million users each month. Notably, more than 60% of these users are experiencing AI for the first time through the platform, which operates primarily via WhatsApp and voice calls, offering free services such as chat assistance and fact-checking.
Despite its rapid growth, Puch AI’s annual revenue was reported at ₹42.9 lakh as of March 31, 2025, raising questions about its capacity to handle large-scale commitments outlined in the MoU. The deal has drawn criticism due to the startup’s small team and lack of a robust infrastructure track record.
Adityanath further clarified that any future progress on the project will depend on a detailed evaluation of the investor’s proposal, stating, “MoUs are non-binding on the State Government. Any further progress… is subject to detailed evaluation of the prospective investor’s proposal.” This statement indicates that while the agreement marks a significant step, it does not guarantee immediate implementation.
The exact nature of the projects that will be pursued under the MoU remains unclear, and the long-term viability of Puch AI in executing these commitments is uncertain. Details remain unconfirmed.
