“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 ₹25,000 crore Memorandum of Understanding (MoU) with Puch AI. This agreement aims to establish a comprehensive AI ecosystem in the state, marking a significant step towards making Uttar Pradesh a hub for artificial intelligence.
Puch AI, a Bengaluru-based startup founded in 2025 by Siddharth Bhatia and Arjit Jain, has gained traction in the Indian market, with over a million users each month. Notably, more than 60% of these users are experiencing AI for the first time, indicating a growing interest in technology among the populace.
The MoU is described as non-binding, a point emphasized by Adityanath, who noted that any further progress will depend on a detailed evaluation of the investor’s proposal. This cautious approach reflects the government’s awareness of the challenges posed by Puch AI’s relatively small team and its limited track record in infrastructure projects.
As of March 31, 2025, Puch AI reported an annual revenue of ₹42.9 lakh, a figure that raises questions about its capacity to fulfill large-scale commitments. Despite these concerns, Bhatia expressed optimism, stating, “UP Government and Puch AI have signed a ₹25,000 crore MoU to make Uttar Pradesh India’s first AI Pradesh.”
The agreement has drawn criticism from various quarters, with skeptics pointing to the startup’s infancy and its ability to manage such a substantial undertaking. The Uttar Pradesh government has assured that any future developments will be contingent upon a thorough assessment of the proposed projects.
Details remain unconfirmed regarding the specific nature of the projects that will be pursued under this MoU. The long-term viability of Puch AI in executing these commitments also remains uncertain, as the startup navigates the complexities of scaling its operations.
In a rapidly evolving technological landscape, the collaboration between Puch AI and the Uttar Pradesh government could serve as a litmus test for the state’s ambitions in the AI sector. Observers will be keenly watching how this partnership unfolds in the coming months.
