Puch AI’s Ambitious ₹25,000 Crore MoU with Uttar Pradesh Raises Eyebrows

“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, following the signing of a ₹25,000 crore memorandum of understanding with Puch AI. This agreement aims to position Uttar Pradesh as India’s first AI Pradesh, a bold ambition for a state that is still developing its technological infrastructure.

Puch AI, a Bengaluru-based startup founded in 2025 by Siddharth Bhatia and Arjit Jain, has rapidly gained traction, with over a million Indians using its services each month. The company, which operates primarily through WhatsApp and voice calls, offers free chat assistance and fact-checking services, making AI accessible to many for the first time—over 60% of its users fall into this category.

Despite its rapid user growth, Puch AI’s financials paint a different picture. As of March 31, 2025, the startup reported an annual revenue of just ₹42.9 lakh, raising concerns about its ability to manage large-scale commitments outlined in the MoU. Critics have pointed out that the startup’s small team and limited infrastructure experience may hinder its capacity to deliver on such an ambitious project.

“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 potential impact of this agreement. However, the non-binding nature of the MoU, as emphasized by Adityanath, indicates that any further progress will depend on a thorough evaluation of Puch AI’s proposals.

The deal has drawn scrutiny, particularly given the uncertainties surrounding the exact nature of the projects that will be pursued under this agreement. Details remain unconfirmed, and the long-term viability of Puch AI in executing these large-scale commitments remains a significant question.

As the Uttar Pradesh government moves forward, it has made it clear that any advancements will be contingent upon detailed assessments of the investor’s capabilities. This cautious approach reflects a broader trend in the state’s strategy to attract investment while ensuring that it aligns with local development goals.

In a rapidly evolving tech landscape, the collaboration between Puch AI and Uttar Pradesh could serve as a litmus test for the state’s ambitions in artificial intelligence. The outcome of this MoU may set a precedent for future partnerships between startups and government entities in India.

As stakeholders await further developments, the focus will be on how Puch AI navigates the challenges ahead and whether it can transform its ambitious plans into tangible results for Uttar Pradesh.