“UP Government and Puch AI have signed a ₹25,000 crore MoU to make Uttar Pradesh India’s first AI Pradesh,” declared Siddharth Bhatia, co-founder of Puch AI, during a press conference on March 24, 2026. This ambitious agreement aims to establish a comprehensive artificial intelligence ecosystem in the state, marking a significant milestone for both the startup and the region.
The Memorandum of Understanding (MoU), however, is non-binding, as clarified by Chief Minister Yogi Adityanath. “An MoU by Invest UP is a preliminary step before detailed due diligence and project evaluation gets done,” he stated, emphasizing that any further progress will depend on a thorough assessment of Puch AI’s proposals.
Puch AI, a Bengaluru-based startup founded in 2025 by Siddharth Bhatia and Arjit Jain, has quickly gained traction, primarily operating through WhatsApp and voice calls. The company offers free services like chat assistance and fact-checking, attracting over a million users each month, with more than 60% experiencing AI for the first time.
Despite its rapid growth, Puch AI’s financials raise eyebrows. The startup reported an annual revenue of ₹42.9 lakh as of March 31, 2025, a figure that seems modest compared to the scale of the MoU. Critics have pointed out the company’s relatively small team and its lack of a proven track record in managing large-scale projects.
As the Uttar Pradesh government moves forward, it has made it clear that any advancements will hinge on a detailed evaluation of the investor’s proposal. “MoUs are non-binding on the State Government. Any further progress… is subject to detailed evaluation of the prospective investor’s proposal,” Adityanath reiterated, highlighting the cautious approach the state is taking.
The deal has sparked a mix of excitement and skepticism among industry experts and local stakeholders. While the vision of transforming Uttar Pradesh into a hub for artificial intelligence is ambitious, the exact nature of the projects to be pursued under the MoU remains unclear.
Furthermore, the long-term viability of Puch AI in fulfilling such large-scale commitments is uncertain. Details remain unconfirmed, leaving many to wonder if the startup can rise to the occasion or if this partnership will falter before it even begins.
As discussions continue, all eyes will be on the developments that follow this landmark agreement, with stakeholders eager to see how Puch AI navigates the challenges ahead and whether it can deliver on its promises to the state of Uttar Pradesh.
