“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, following the signing of a significant agreement with Puch AI.
The ₹25,000 crore memorandum of understanding aims to establish a comprehensive AI ecosystem in the state. Puch AI, a Bengaluru-based startup founded in 2025 by Siddharth Bhatia and Arjit Jain, primarily operates through WhatsApp and voice calls, providing free services like chat assistance and fact-checking.
“UP Government and Puch AI have signed a ₹25,000 crore MoU to make Uttar Pradesh India’s first AI Pradesh,” Bhatia announced, highlighting the ambitious vision behind the partnership.
Despite the excitement, the MoU is non-binding, with Adityanath emphasizing that any further progress is contingent on a thorough evaluation of the investor’s proposal. This caution arises from concerns regarding Puch AI’s relatively small team and its limited infrastructure track record.
Currently, over a million Indians use Puch AI each month, with more than 60% experiencing AI for the first time. However, the startup’s annual revenue stood at just ₹42.9 lakh as of March 31, 2025, raising questions about its capacity to handle large-scale commitments.
Details remain unconfirmed regarding the specific projects that will be pursued under the MoU. The Uttar Pradesh government has made it clear that any future developments will be subject to a detailed evaluation process.
As the state positions itself as a leader in AI innovation, the collaboration with Puch AI could pave the way for significant advancements. However, the long-term viability of Puch AI in executing these ambitious plans remains uncertain.
