AstroTalk in talks to raise $100M at $1.5B valuation
What's the story
AstroTalk, a Noida-based astrology platform, is in talks for a new funding round of $50-100 million, according to Entrackr. The company is seeking a valuation between $1.3 billion and $1.5 billion, an increase from its previous valuation of $300 million last year. The current discussions involve both new and existing investors, and this could be the final major funding round before the company files its Draft Red Herring Prospectus (DRHP) for a public listing by first half of next year.
Business expansion
Business model and revenue streams
AstroTalk provides a platform for users to consult over 45,000 astrologers and spiritual experts online. The company has also launched a direct-to-consumer (D2C) shop for wellness products, which is expected to contribute up to 30% of its overall revenue. This diversification comes as part of AstroTalk's strategy to broaden its offerings beyond traditional astrology services.
Funding journey
The company has raised around $34 million so far
AstroTalk has raised a total of around $34 million so far, with the latest round bringing in $14 million in June 2024. The company is gearing up for its initial public offering (IPO) process, which it plans to start in a few months. If successful, this would make AstroTalk the first venture-funded company in the online astrology space to go public.
Financial growth
AstroTalk's financials and competitors
AstroTalk has witnessed tremendous growth over the last two fiscal years. For FY25, the company reported a revenue of ₹1,182 crore and a profit of over ₹250 crore. This is nearly double its performance from the previous year. The company's planned IPO comes as profitable consumer-tech start-ups are gaining renewed interest from investors. However, it will have to compete with players like Astrosage, Astroyogi, GaneshaSpeaks, and InstraAstro in the online astrology space.