E-commerce major Flipkart is reportedly in advanced discussions to acquire astrology and spirituality startup InstaAstro, signaling a potential expansion into a niche yet rapidly growing sector. If the deal materializes, Flipkart could spend between $18 to $25 million on the acquisition, sources familiar with the matter revealed.
A Strategic Bet on Astrology and Devotion
Astrology-focused startups have been gaining traction, attracting significant investor interest. InstaAstro, founded in 2021 by Nitin Verma, has carved out a space with its horoscope, tarot reading, and numerology services available in multiple languages. The startup has also expanded into spiritual e-commerce, daily pooja services, and reiki healing.
Backed by investors like Artha Venture Fund, LogX Ventures, Singularity Ventures, Blume Founders Fund, and Ramakant Sharma’s LogX Ventures, InstaAstro has raised approximately Rs 21.7 crore ($2.6 million) across two funding rounds. Flipkart’s move comes amid increasing consolidation in the sector, with smaller players being acquired as competition intensifies.
Possible Rebranding on the Horizon
If the acquisition goes through, Flipkart may rebrand InstaAstro as “Sukh,” according to insiders. The potential name change hints at Flipkart’s intent to reposition the business under a broader spiritual and well-being umbrella, aligning it with consumer sentiment in India’s vast astrology and devotional services market.
Despite its growth, InstaAstro isn’t without challenges. The company’s revenue from operations nearly doubled to Rs 25 crore in FY24 from Rs 12.96 crore in FY23. However, its losses also surged, jumping to Rs 8.11 crore from Rs 4.26 crore in the previous fiscal year. Sources estimate that InstaAstro operates at an annual revenue run rate (ARR) of Rs 50-60 crore.
The Battle for Dominance in Spiritual Tech
The astrology and spiritual tech market has seen intense competition, with several players vying for consumer attention. InstaAstro faces direct competition from:
- AstroTalk – The market leader, reporting Rs 651.12 crore in FY24 revenue with a profit of nearly Rs 100 crore.
- GaneshaSpeaks – A long-established brand with a strong online presence.
- Click Astro – A major player in Vedic astrology services.
- Bodhi – Focused on personalized astrology and spiritual guidance.
AstroTalk remains the undisputed leader, setting an ambitious revenue target of Rs 1,250 crore for FY25. Flipkart’s entry into the space could shake up the competitive landscape, particularly if it leverages its massive user base and logistics infrastructure to drive astrology-based e-commerce.
Funding Surge and Market Consolidation
Over the past 18 months, the astrology and spiritual tech sector has witnessed over $65 million in collective funding. This surge has also led to industry consolidation, with companies merging to strengthen their market positions. Some recent acquisitions include:
| Acquirer | Acquired Company |
|---|---|
| BrahmVeda | Vedvaani |
| Melooha | Munitalks |
With Flipkart now considering its entry, the sector’s dynamics could shift further, potentially opening doors for more acquisitions and partnerships. The move also aligns with a broader trend where e-commerce platforms are diversifying beyond traditional categories to capture emerging consumer interests.
Awaiting Official Word
Despite strong speculation and multiple insider confirmations, Flipkart and InstaAstro have yet to make any official statements regarding the acquisition. Queries sent to both companies remained unanswered at the time of publication.
If finalized, this deal could mark a turning point for astrology-focused startups, elevating them from niche services to mainstream consumer offerings backed by major corporate players. With Flipkart’s deep pockets and vast reach, the astrology market in India may be on the verge of a significant transformation.
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