Puch AI Signs MoU with Uttar Pradesh for AI Development

“An MoU by Invest UP is a preliminary step before detailed due diligence and project evaluation gets done,” stated Yogi Adityanath, 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. The agreement aims to build a comprehensive AI ecosystem in the state.

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 initiative is expected to enhance the state’s technological landscape.

However, the MoU is non-binding, as emphasized by Adityanath, who noted that any further progress would be contingent 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,” he added.

Puch AI operates primarily through WhatsApp and voice calls, providing free services such as chat assistance and fact-checking. Currently, over a million Indians use Puch AI each month, with more than 60% of them experiencing AI for the first time.

The startup reported an annual revenue of ₹42.9 lakh as of March 31, 2025. Despite its rapid growth, the deal has faced criticism due to Puch AI’s small team and its lack of a proven infrastructure track record.

Details remain unconfirmed regarding the specific projects that will be pursued under the MoU. Additionally, the long-term viability of Puch AI in executing large-scale commitments remains uncertain.

The Uttar Pradesh government has made it clear that any future developments will be subject to a thorough assessment of the startup’s capabilities and proposals.