Astrotalk Set to Raise $20 Million in First Institutional Funding Round from Left Lane Capital
- ByStartupStory | February 6, 2024
Noida-based startup Astrotalk, known for providing astrology consulting services, is gearing up to secure $20 million in its inaugural institutional funding round from New York-based venture capital firm Left Lane Capital. The infusion of funds is earmarked for the expansion of its services into new geographic areas, with a particular focus on tapping into the lucrative market in south India, according to cofounder Anmol Jain.
Astrotalk aims to bolster its growth through strategic acquisitions in adjacent sectors such as devotion, encompassing both tech and physical product providers. The startup also plans to explore international acquisitions using the proceeds from the funding round. The valuation of the company stands at approximately $200 million pre-money, reflecting its robust growth trajectory.
The company’s board has greenlit a special resolution to issue 11,211 shares to Left Lane Capital, amounting to approximately $20 million. Earlier reports from October 2023 had indicated that Astrotalk was in discussions to raise funds that would value the company in the range of $200 million to $250 million.
In the ongoing fiscal year, Astrotalk aims to achieve a revenue target of Rs 620-630 crore, with a profit of Rs 120 crore, surpassing the Rs 283 crore revenue recorded in FY23. The company registered a net profit of Rs 27 crore during the same period. Jain expressed optimism about the market’s growth potential, highlighting the company’s plans to expand its reach in southern cities, where there is a growing demand for astrology services in regional languages like Tamil, Telugu, Kannada, Malayalam, Marathi, and Bengali.
Astrotalk is also eyeing international expansion, with 20% of its revenue derived from overseas markets. The company operates on a revenue-sharing model with over 10,000 active astrologers on its platform, offering consultation prices ranging from Rs 10 to Rs 200 per minute, with an average of Rs 20-25. Jain emphasized the company’s significant investment in marketing and user acquisition efforts.
Jain revealed that Astrotalk handles a monthly volume of 30 lakh sessions, with a major focus on marriage-related consultations. The company has diversified its offerings to include e-puja services, venturing into a competitive landscape alongside players like Vama, Utsav, and DevDham (formerly DevDarshan). Jain believes that e-puja is in its early stages and is expected to contribute around 20% to the overall revenue.
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