“An MoU by Invest UP is a preliminary step before detailed due diligence and project evaluation gets done,” stated Yogi Adityanath, the Chief Minister of Uttar Pradesh, highlighting the cautious optimism surrounding the recent agreement with Puch AI.
On March 24, 2026, Uttar Pradesh signed a ₹25,000 crore Memorandum of Understanding (MoU) with Puch AI, a Bengaluru-based startup founded just a year prior by Siddharth Bhatia and Arjit Jain. The ambitious agreement aims to build a comprehensive AI ecosystem in the state, positioning Uttar Pradesh as a potential leader in artificial intelligence in India.
Puch AI, which operates primarily through WhatsApp and voice calls, has quickly gained traction, with over a million Indians using its free chat assistance and fact-checking services each month. Notably, more than 60% of these users are experiencing AI for the first time, indicating the startup’s role in democratizing access to technology.
Despite the promising figures, the MoU remains non-binding, as emphasized by Adityanath. He noted that any further progress on the project is contingent upon a detailed evaluation of Puch AI’s proposal. This caution comes amid criticism regarding the startup’s relatively small team and lack of a substantial infrastructure track record.
As of March 31, 2025, Puch AI reported an annual revenue of ₹42.9 lakh, raising questions about its capacity to fulfill the large-scale commitments outlined in the MoU. The deal has sparked discussions about the viability of such ambitious projects being executed by a young startup.
“UP Government and Puch AI have signed a ₹25,000 crore MoU to make Uttar Pradesh India’s first AI Pradesh,” Bhatia remarked, expressing enthusiasm for the partnership. However, the exact nature of the projects that will be pursued under this agreement remains unclear, leaving stakeholders in anticipation.
Details remain unconfirmed regarding the specific initiatives that will emerge from this collaboration. The long-term sustainability of Puch AI in managing extensive commitments also raises uncertainties that need to be addressed as the partnership progresses.
As the situation develops, the focus will be on how Puch AI navigates the challenges ahead and whether it can leverage this opportunity to establish a lasting impact on Uttar Pradesh’s technological landscape.
