AstroTalk profit zooms 12X to Rs 100 Cr in FY24

Astrology sells like hotcakes in India, and AstroTalk has emerged as a leader in the spiritual-tech space. Similar to FY23, the Noida-based company achieved over two-fold growth in the fiscal year ending March 2024, while its profit surged nearly 12-fold during the same period.

AstroTalk’s revenue from operations surged 2.3X to Rs 651.12 crore in the last fiscal year from Rs 283.32 crore in FY23, its annual financial statement filed with the Registrar of Companies (RoC) shows

AstroTalk operates as a digital astrology consultancy platform, connecting users with professional astrologers via mobile and web apps. Its income from India spiked 2X to Rs 529.6 crore whereas revenue from overseas countries (export) jumped 4.2X to Rs 121.44 crore in FY24.

To check complete Expense Breakdown visit thekredible.comView full data

Apart from operational income, the company earned an additional Rs 8 crore from interest, bringing its total revenue to Rs 659 crore in FY24.

Looking at the expenses, employee benefit expenses accounted for 5.5% of the total expense and increased 28.29% year-on-year to Rs 29.61 crore in FY24. Advertising and  promotional expenses increased by 116% to Rs 162.68 crore in the last fiscal year. Importantly, legal and professional charges accounted for 60% of the total expense which increased by 103% to Rs 319 crore in FY24. 

Finance, Software and website maintenance were other expenses which accelerated AstroTalk’s total cost by 97.9% to Rs 531 crore in FY24.

AstroTalk achieved exceptional 11.8X year-on-year growth in profit which flew to Rs 99.99 crore in the fiscal year ending March 2024. Its ROCE and EBITDA margin stood at 40.16% and 19.42%, respectively. On a unit level, the company spent Re 0.82 to earn a rupee of operating revenue in  the last fiscal year.

Astro and spiritual tech startups attracted substantial funding despite various challenges. According to data from TheKredible, startups in this sector—such as AstroTalk, Vama, Ustav App, DevDham, InstaAstro, and Melooha—have collectively raised close to $60 million in the past 15 months. Puneet Gupta-led AstroTalk alone scooped up $34 million across two rounds this year. 

While many will be amazed possibly, and a little disappointed even to see the success of Astrology based apps and firms, it has to be said, the numbers we see from them are a direct consequence of the  formalization of the economy. Segments where one would never have imagined tax contributions from are contributing to the exchequer, and that’s the least we should be grateful for. Coming back to the business itself, one wonders if the old adage of people running to astrologers when times are tough holds true anymore,  as there certainly is no sign of that kind of distress to explain the success of these firms. If anything, it looks like a direct outcome of the new consumerist economy where people want everything now or as soon as possible, and short of whatever it takes, are also seeking information from wherever it takes to get there. 

Astrotalk is set to grow strongly, and will probably need no help getting there from investors. In fact, the only prediction for the future might be if this firm goes as far as an IPO to offer an exit, or will there be a private buyout of its investors? Now that’s a tough question for an astrologer.