A day after unveiling a ₹25,000 crore partnership in artificial intelligence, Uttar Pradesh Chief Minister Yogi Adityanath on Tuesday, March 24, sought to manage expectations, emphasizing that the agreement with Puch AI is merely a memorandum of understanding and not a finalized investment.
The Chief Minister explained that the proposal is non-binding, will undergo comprehensive due diligence, and can be revoked if the company fails to satisfy the necessary criteria.
This clarification followed the announcement, which raised significant scrutiny regarding both the magnitude of the proposal and the startup’s credentials.
Andhra Pradesh engagement raises early questions
Prior to the Uttar Pradesh announcement, Puch AI had entered into an MoU with the Andhra Pradesh government for municipal-level AI applications, specifically targeting support for women’s self-help groups in December 2025.
In contrast to the UP MoU, the Andhra Pradesh project aligns with the company’s existing operations; however, sources indicate to CNBC-TV18 that progress on this engagement has been limited so far.
As per sources, the state is urging the company to deliver a functioning pilot, as doubts remain about the company’s ability to execute. There is no financial commitment at this stage, and further advancements will depend on execution and validation.
This suggests that even at a smaller scale, the engagement is still in a pilot phase, with the government yet to allocate funds. This development now adds context to the scrutiny surrounding the considerably larger Uttar Pradesh proposal.
At ₹25,000 crore, the proposed investment is exceptionally large for a state-led technology initiative. It constitutes approximately 3% of Uttar Pradesh’s annual budget and more than 11% of its capital expenditures.
The plan presents a comprehensive vision that encompasses AI parks, data centers, an AI university, and an AI city near Lucknow. The government has framed this as part of its ambition to create an “AI Pradesh.”
However, the government’s clarification indicates that this remains a preliminary proposal, contingent upon feasibility, financing, and execution capability.
The magnitude of the proposal has brought significant attention to Puch AI.
What is known about Puch AI
Founded in mid-2025, the Bengaluru-based startup primarily operates via WhatsApp, supports over 22 Indian languages, and claims nearly one million users, many of whom are first-time AI users engaging in regional languages.
Simultaneously, public information reveals notable gaps:
This discrepancy highlights a stark contrast between the company’s current activities and the scope described in the MoU.
The company is led by Siddharth Bhatia, a BITS Pilani graduate with a PhD from the National University of Singapore, who has research experience at Google Research and AWS.
He co-founded the company alongside Arjit Jain, an IIT Bombay alumnus.
Bhatia has also cultivated a robust social media presence, including viral posts concerning ambitious acquisition proposals.
Hey Aravind, here’s a $50B unsolicited offer to acquire you and Google Chrome (once you’ve acquired it).
Yes, a $50M company is making this offer. If anyone wants in on the deal, email perplexity@puch.aiFirst to convince @AravSrinivas to sell wins an iPhone! pic.twitter.com/kPJD1Z4Acj
— Siddharth Bhatia (@siddharthb_) August 13, 2025
These have highlighted the company but have also intensified scrutiny regarding its positioning and scale.
Responding to the ongoing criticism, Bhatia asserted that the project will not utilize taxpayer funds and will be conducted as a phased public-private partnership, with financing sourced from external investors.
He also contested claims regarding low revenue, calling them misleading, and stated that the company is well-funded, though financial specifics have not been disclosed.
Clarifying a few things, starting with the MoU.
Are you taking taxpayer money?
No. The MoU signed with the UP Government is structured as a public-private partnership. It does not involve any cost to the taxpayers of Uttar Pradesh. On the contrary, it brings investment into the…— Siddharth Bhatia (@siddharthb_) March 24, 2026
Bhatia added that Puch AI is committed to establishing what he refers to as sovereign distribution for AI in India, using platforms like WhatsApp and voice interfaces to connect with users beyond conventional applications.
At this juncture, the Uttar Pradesh government’s clarification reinforces that the MoU is not a guaranteed investment but rather an initial framework.
