Astrotalk: Discovering the Spiritual Startup
Astrotalk, a prominent online astrology platform, was founded by Puneet Gupta, a former IT engineer turned entrepreneur. The platform aims to connect individuals with astrologers, fostering meaningful connections. With its extensive network of over 13,000 Vedic astrologers, Tarot readers, numerologists, Vastu experts, and more, Astrotalk enables users to engage with them through calls and chats, seeking answers to their queries.
The present global astrology market boasts a valuation in the billions, with the latest recorded figure reaching $12.8 billion. Forecasts suggest that the market is on track to approach nearly $22.8 billion by 2031.
In the realm of Indian spirituality, religion, and devotion, the market is estimated to reach $58.5 billion in 2023, with astrology contributing over $10 billion. The overall market is anticipated to experience a compound annual growth rate (CAGR) of 10% from 2024 to 2032. The funding landscape for Astrotech startups in India reflects figures of $947k in 2019, $801k in 2020, $2.63 Mn in 2021, and $950k in 2022.
Astrotalk, primarily self-funded, achieved its highest daily revenue of INR 1.8 crore, approaching its fiscal year 2024 target of INR 600 crore. Astrotalk now handles daily business of Rs 70 lakh and delivers over 2,50,000 minutes of consultations daily, with a user base exceeding 30 million, New users typically spend between INR 200 and 500 per month on the platform, while returning customers spend up to three times that amount.
The platform attracts users aged 18 to 35, suggesting that, contrary to the elderly, who openly express their prayers in India, the youth tend to privately seek solutions for their concerns. Astrotalk reported a revenue of INR 282 crores in the fiscal year 2023, with a profit after tax (PAT) of INR 27 crores.
Astrotalk derives its revenue from consultation fees for real-time interactions with astrologers. Additional income streams are created through premium services, offering in-depth analyses and extended sessions, as well as subscription models that provide recurring benefits to foster user loyalty. The platform operates as a marketplace for astrology-related products such as e-Pooja and gemstones. Revenue from partnering with astrologers involves commissions or subscription fees. Collaborations with relevant businesses for promotions and income from targeted ads contribute to further diversifying revenue streams.
Astrotalk faces competition from other platforms such as Astrosage, Astroyogi, My Pandit, and similar services. There are many challenges faced by astrotalk. Starting from difficulty in gaining people’s trust to ensuring the astrologers they hire were authentic and do not participate in any malpractices. The astrology consultation app, Astrotalk, is contemplating an IPO in India by 2025–26 with a revenue target of Rs 2,000 crore. Currently exploring various options, the company has reported a notable upswing in both revenue and profit during FY23.
It would be interesting to watch whether Astrotalk is able to achieve the intended targets.
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