Online astrology platform AstroTalk has been growing at a rapid clip in the past three fiscal years and the company posted an impressive 2.4X year-on-year growth in its scale. Significantly, it also managed to grow its profitability during the fiscal year ending March 2023.
AstroTalk’s revenue from operations grew to Rs 283 crore in FY23 from Rs 115 crore in FY22, according to its annual financial statements filed with the Registrar of Companies.
AstroTalk is a platform to consult astrologers via the internet, call and chat and claims to have 13,000 astrologers, tarot readers, numerologists, and Vastu experts on its platform. It lets you connect with such experts for future predictions related to marriage, love life, career, and health among others.
The sale of consultation services is the primary source of revenue for AstroTalk in FY23. About 65% of the consultation was done via chat while the rest was enabled through phone calls, Anmol Jain, co-founder and chief business officer (CBO) of AstroTalk told Entrackr in an interview.
According to Jain, on-call consultation usually lasts around 10 minutes, with an average call rate of approximately Rs 20 per minute. Importantly, the company expanded its operations to the US, UK, Canada, and other regions.
“Around 17% of the company’s revenue was generated from outside India and 80% of the people who consult are under the age of 33,” said Jain.
Its employee benefit, advertising promotion, charges paid to astrologers and other experts, legal fees, and other overheads pushed AstroTalk’s expenditure by 2.49X to Rs 269 crore in FY23 from Rs 108 crore in FY22.
For context, AstroTalk roped in celebrities like Ranbir Kapoor, Shraddha Kapoor, Mouni Roy, Bharti Singh, and Virender Sehwag to promote its services.
Check TheKredible for complete expenditure break up.
The surge in scale and controlled expenditure helped AstroTalk to achieve a 41.7% surge in profits which grew to Rs 8.5 crore in FY23 from Rs 6 crore in FY22. Its ROCE and EBITDA margin stood at a positive 32% and 6% respectively. On a unit level, it spent Rs 0.95 to earn a rupee in FY23.
|Expense/Rupee of ops revenue
AstroTalk is currently in late-stage talks to raise around $25-30 million and seeking a valuation of $220-$250 valuation. Entrackr had exclusively reported the development in August. As per the current run rate, the company projected a revenue of Rs 650 crore with Rs 100 crore profits for FY24.
GaneshaSpeaks, InstraAstro, Click Astro, and Bodhi are some of its closest competitors.
While social scientists might have much to say about the strong numbers for AstroTalk and the likes there is no doubt that the firm is on a streak that any startup would covet. The market for insecurity and reassurance for its users remains strong and should remain so for the long term as well. Few startups have built a business as strong and reassuring for its investors as AstroTalk has done. And, that too with mere $800K funding to date.