“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 memorandum of understanding (MoU) on March 24, 2026.
The agreement, valued at ₹25,000 crore, aims to establish a comprehensive AI ecosystem in Uttar Pradesh. However, Chief Minister Yogi Adityanath clarified that the MoU is non-binding, emphasizing, “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 Siddharth Bhatia and Arjit Jain, has quickly gained traction, with over a million users in India each month. Notably, more than 60% of these users are experiencing AI for the first time through Puch AI’s services, which primarily operate via WhatsApp and voice calls.
Despite its rapid growth, Puch AI’s annual revenue was reported at ₹42.9 lakh as of March 31, 2025, raising concerns about the startup’s capacity to handle large-scale commitments. Critics have pointed out the company’s small team and lack of a proven infrastructure track record as potential obstacles to fulfilling the ambitious goals outlined in the MoU.
Adityanath further noted that any future developments stemming from the MoU would be contingent upon a detailed evaluation of Puch AI’s proposals, stating, “MoUs are non-binding on the State Government. Any further progress… is subject to detailed evaluation of the prospective investor’s proposal.”
While the Uttar Pradesh government is optimistic about the potential of this partnership, the exact nature of the projects to be pursued under the MoU remains unclear. Details remain unconfirmed.
As Puch AI continues to navigate this new partnership, the long-term viability of its operations and ability to execute large-scale projects will be closely scrutinized by both the government and the public.
