Astrotalk's $120M investment deal falls through over objectionable content
What's the story
Astrotalk, a start-up specializing in astrology technology, has seen its $100-120 million investment deal with Hornbill Capital fall through. The India-focused hedge fund was set to invest at a valuation of $1-1.2 billion, tripling Astrotalk's worth from $300 million in under two years. However, the deal has now been called off due to concerns over NSFW content found during due diligence, as well as a mismatch in valuations between the two parties.
Content concerns
Hornbill Capital uncomfortable with NSFW content on platform
During the due diligence process, Hornbill Capital expressed discomfort over NSFW content, including videos and chats, found on Astrotalk's app and platform. "No investor wants to take on that kind of risk and have exposure to a gray area," a source familiar with the matter told Moneycontrol. However, some sources close to Astrotalk said the deal was called off due to valuation mismatches rather than content concerns.
Company statement
No formal agreement with Hornbill Capital, says Astrotalk co-founder
In response to the news, Astrotalk's co-founder Anmol Jain denied any formal agreement with Hornbill Capital. "All this is completely baseless as we never signed any term sheet with any investor," he told Moneycontrol. The company was negotiating a valuation of $1-1.2 billion during talks, more than tripling its worth from $300 million in 2024.
Business expansion
Astrotalk's growth and funding history
Astrotalk connects users with verified astrologers for personalized guidance. The company has seen massive growth, ending FY25 with a revenue of ₹1,200 crore, nearly double its FY24 revenue of ₹651 crore. It also increased profits from ₹100 crore to ₹250 crore during the same period. Astrotalk has raised $30 million from New York-based Left Lane and Elev8 Venture Partners so far.