Puch AI has signed a ₹25,000 crore MoU with Uttar Pradesh to develop an AI ecosystem, but uncertainties linger regarding execution.
“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, regarding 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 in 2025 by Siddharth Bhatia and Arjit Jain. This agreement aims to establish a comprehensive AI ecosystem in the state, positioning Uttar Pradesh as a potential leader in artificial intelligence.
According to Bhatia, “UP Government and Puch AI have signed a ₹25,000 crore MoU to make Uttar Pradesh India’s first AI Pradesh.” This ambitious vision reflects the growing importance of AI technology in various sectors, including education, healthcare, and governance.
However, the MoU is non-binding, as emphasized by Adityanath, who noted, “MoUs are non-binding on the State Government. Any further progress… is subject to detailed evaluation of the prospective investor’s proposal.” This statement highlights the cautious approach the government is taking towards this partnership.
Puch AI operates primarily through WhatsApp and voice calls, providing free services such as chat assistance and fact-checking. With over a million users each month, more than 60% of whom are experiencing AI for the first time, the startup has quickly gained traction in the Indian market.
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. Critics have pointed out the startup’s small team and lack of infrastructure track record as potential hurdles in executing the ambitious plans outlined in the MoU.
The Uttar Pradesh government has stated that any further developments will depend on a detailed evaluation of Puch AI’s proposals. Details remain unconfirmed regarding the specific projects that will be pursued under this agreement.
As the landscape of artificial intelligence continues to evolve, the collaboration between Puch AI and the Uttar Pradesh government could set a precedent for similar initiatives across India. However, the long-term viability of Puch AI in fulfilling its commitments remains uncertain.
