Astrotalk’s FY24 Profit Jumps Multifold To INR 100 Cr

Astrology startup Astrotalk posted a multifold jump in its consolidated net profit to INR 100 Cr in the financial year ended March 31, 2024 on strong revenue growth and improvement in margins.

The startup’s profit zoomed 1,080% to INR 99.99 Cr in FY24 from INR 8.47 Cr in the previous fiscal year.

Operating revenue skyrocketed 129.81% to INR 651.12 Cr during the year under review from INR 283.32 Cr in FY23 on strong demand for its services.

Founded in 2017 by Puneet Gupta and Anmol Jain, Astrotalk earns revenue by levying a fee on customers for consultations offered by astrologers on its platform. In September this year, it also forayed into the spiritual ecommerce segment to shore up its revenue.

Earlier this month, Inc42 exclusively reported that Astrotalk appointed former Google executive Siddharth Prakash Singh as its first chief technology officer.

The platform currently hosts more than 15,000 astrologers and claims to have served more than 4 Cr users till date. It competes with the likes of Astrosage, AstroYogi, AstroBuddy, Ganeshaspeaks, AppsForBharat, and other unorganised players and independent astrology service providers.

In June this year, Astrotalk raised INR 110 Cr in a mix of primary equity infusion and secondary share sale. At the time, the startup said it would utilise the proceeds to expand its offering in regional languages.

Prior to that, it raised $20 Mn in its Series A funding round from New York-based venture capital firm Left Lane Capital in February this year.

Including other income of INR 7.95 Cr, the startup’s total revenue jumped to INR 659.08 Cr during the year under review from INR 283.97 Cr a year ago.

Astrotalk’s cash and cash equivalents stood at INR 26.82 Cr at the end of FY24.

Break Up Of Astrotalk’s FY24 Revenue

The Puneet Gupta-led startup surpassed the INR 500 Cr mark in domestic revenue during the year ended March 2024. Domestic sales more than doubled to INR 529.67 Cr in FY24 from INR 254.92 Cr in FY23.

Export sales came in at INR 121.44 Cr during the year under review, jumping over four times  from INR 28.40 Cr a year ago.

Zooming Into Expenses

In line with the increase in revenue, the startup’s total expenditure ballooned 104% to INR 501.47 Cr in FY24 from INR 245.15 Cr a year ago. 

Employee Benefit Expenses: The online astrology startup spent INR 29.61 Cr on employee costs in FY24, up 28% from INR 23.08 Cr in FY23. Of these, it spent INR 9.18 Cr towards share based payments (ESOPs) as against INR 11.67 Cr in FY23. 

Digital Marketing: The spending under this expense head more than doubled to INR 156.75 Cr during the year under review from INR 74.19 Cr in FY23.

Legal & Professional Expenses: Astrotalk incurred INR 319 Cr in legal and professional costs in FY24. It had spent INR 156.86 Cr under this bucket in FY23. 

Software And Website Expenses: The company’s spending in this bracket surged nearly 56% to INR 5.37 Cr during the year under review from INR 3.45 Cr a year ago.

Astrotalk’s strong FY24 show comes at a time when India’s astrology market is witnessing a boom, driven by technological advancements and shift in consumer behaviour.

As per a report, the Indian religious and spiritual market, which was valued at $58.56 Bn in 2023, is poised to clock a CAGR of 10% to become a $150 Bn opportunity by 2032.