Online astrology platform AstroTalk has raised $20 million in its Series A round from New York-based venture capital firm Left Lane Capital. This is the first institutional funding for the Noida-based startup, which claims to be the largest astrology service provider in India.
AstroTalk’s growth and profitability
AstroTalk was founded in 2017 by Puneet Gupta, an IIT Roorkee alumnus, who wanted to create a reliable and convenient platform for people to consult astrologers and other experts. The platform offers online consultations via chat, call, and video with over 13,000 astrologers, tarot readers, numerologists, and vastu experts.
The startup has grown rapidly in the past few years, especially during the pandemic, as more people sought guidance and solace from astrology. According to the company, it has over 20 million registered users and serves more than 100,000 customers daily. It also claims to have a high customer retention rate of 65%.
Unlike many other consumer internet startups, AstroTalk is profitable and has been bootstrapped until now. The company posted a revenue of Rs 283 crore in FY23, a 146% increase from the previous year. Its profit also rose by 41.7% to Rs 8.5 crore in the same period.
AstroTalk’s plans for the future
With the fresh capital infusion, AstroTalk plans to expand its presence in India and abroad, especially in the US, UK, Canada, and Australia. It also aims to invest in technology, product development, and marketing to enhance its user experience and reach.
The company has also set an ambitious goal of achieving a revenue of Rs 2,000 crore and going for an IPO by 2025-26. It hopes to leverage the growing demand for astrology and related services, which is estimated to be a $40 billion market globally.
AstroTalk’s competition and challenges
AstroTalk is not the only player in the online astrology space. It faces competition from platforms like GaneshaSpeaks, InstraAstro, Click Astro, and Bodhi. Some of these rivals have also raised funds recently, such as Vama, Utsav, DevDham (previously DevDarshan), and Melooha.
AstroTalk also faces challenges in terms of maintaining the quality and credibility of its experts, as well as dealing with the skepticism and stigma associated with astrology in some segments of society. The startup, however, believes that astrology is a science and a way of life, and that it can help people make better decisions and improve their well-being.