Astrotalk Roared Rs 100 cr Profit

The Astronomical Rise

• Noida-based digital astrology consultancy startup AstroTalk has reported a massive 1,000% increase in profits for the fiscal year ending March 2024.
• According to its annual financial statement filed with the Registrar of Companies (RoC), the startup's profit surged by 1,080%, reaching Rs 99.99 crore.
• This significant profit growth was driven by over 100% increase in revenue from operations, which rose to Rs 651.12 crore in FY24, up from Rs 283.32 crore in FY23.
• According to Entrackr's report, AstroTalk's impressive revenue figures stemmed from both domestic and international sources. The startup's income from Indian operations doubled to Rs 529.6 crore, while its revenue from overseas markets experienced an even greater leap, increasing 4.2 times to Rs 121.44 crore.
• Additionally, the Noida-based startup generated Rs 8 crore from interest income, bringing its total revenue to Rs 659 crore in FY24.
• AstroTalk's growth came alongside a rise in expenses. Total costs increased by 97.9%, amounting to Rs 531 crore in FY24. Key contributors to this increase included employee benefit expenses, which rose 28.29% year-on-year to Rs 29.61 crore, representing 5.5% of the total expenses. Advertising and promotional costs surged by 116% to Rs 162.68 crore.
• The most significant expense category was legal and professional fees, which constituted 60% of total expenses and increased by 103% to Rs 319 crore. Other notable expenses included finance, software, and website maintenance.
• In June, AstroTalk raised USD 9.5 million in an extension of its Series A funding round, bringing the startup's post-money valuation to USD 300 million.
• The round was led by existing investors Left Lane Capital, a New York-based venture capital firm that invests in high-growth consumer and internet technology companies and Elev8 Capital.
• The startup initially raised USD 20 million in February 2024 in a Series A funding round led by Left Lane Capital.
• Founded in 2017 by Puneet Gupta and Anmol Jain, Astrotalk is a globally managed marketplace that connects consumers to astrologers for horoscope readings, birth chart analysis, live prayers and more.

India’s Love for Astrology

• Astrology Market Size was valued at USD 13.5 Billion in 2023. The Astrology market industry is projected to grow from USD 14.3 Billion in 2024 to USD 21.52 Billion by 2032, exhibiting a compound annual growth rate (CAGR) of 6.00% during the forecast period (2024 - 2032).
• Increased personalized astronomy sessions and growing mobile astronomy apps are the key market drivers that are augmenting the expansion of the market.
• The Astrology Market segmentation, based on End User, includes Millennials, Gen X, and Boomers. In 2023, the Millennials generated the most income. Millennials are "caught up on social media patterns” and are far as likely as Gen Z to post zodiac-related memes and utilize crystal gazing as an implication of self-distinguishing proof.
• The Asia-Pacific Astrology Market is anticipated to experience the highest CAGR between 2024 and 2032. This is due to the expanding awareness of a developing interest in individual development, self-discovery, and wellness.

Challenges on its way

• Puneet was born in Delhi and came from a lower-middle-class family. He was not good at studies and didn't go to IIT or IIM. He left his first job to start a startup without a plan and failed.
• In 2013, Puneet left his job at Nomura to pursue his dreams. He struggled for a year and returned to Mumbai to do odd jobs.
• A senior colleague noticed Puneet's anxiety and offered him an astrology prediction. Puneet initially scoffed at the idea, but the prediction turned out to be remarkably accurate. The prediction made him rethink his perspective on astrology.
• Puneet discussed his ideas for Astrotalk with his colleague, who predicted that the app would gain popularity starting in 2018 and continue to thrive until 2026. Puneet hired expert astrologers and launched Astrotalk.
• And today, Astrotalk has a team of over 1,600 astrologers and receives over 55,000 app accesses per day. The majority of its customers are young people, and 90% of its income comes from customers under 35 years old.

Editor’s Note