Astrotalk Plans Offline Stores: Inside Astrology Giant’s Big Bet Before IPO

India’s passion for celestial bodies goes back thousands of years and, as ancient legends of the land professed and practised the study of stars and planets, it gradually became integral to Hinduism, often blurring the line between astrology and spirituality.  

Astrology is crucial to millions in their everyday lives. “Everyone is curious to know what’s in the stars. And, they plan their actions based on this reading,” said Puneet Gupta, an entrepreneur. 

The software engineer wanted to digitally disrupt the world of astrology and spirituality with his startup AstroTalk. It’s been seven years, and his brainchild has broken into a business that would run more on word-of-mouth, faith, and customer loyalty than on metrics like daily active users, monthly active users, EBITDA and revenues, and emerged as a leader in India’s INR 50,000 Cr ($6.5 Bn) astrotech market.

The model was simple – make astrologers digitally skilled and connect them to millions of users online through video and audio chats. But, Gupta realised the need for scaling as GenZ and millennials began crowding up in India’s $163 Mn app-based astrology market that’s growing over 49% a year to reach $1.8 Bn by 2030 to map their future. 

Last year, Astrotalk forayed into selling spiritual products like gemstones and rudraksha beads through its ecommerce vertical. In Gupta’s words, the startup is selling spiritual products, mostly bracelets, of INR 50 Lakh from its platform every day. This adds up to INR 182.5 Cr in annual turnover, making up 10-15% of the revenue pie.

Backed by a 100% topline growth to INR 1,200 Cr in FY25 from INR 651 Cr in the previous fiscal and a 2.5-fold surge in bottomline to INR 250 Cr from INR 100 Cr, Gupta is now aiming for the next big leap – Astrotalk’s offline foray.

The startup plans to roll out its first physical store in the National Capital Region (NCR) by the end of this year. “These won’t be simple retail outlets – they will act as bridges of trust between the digital world and the deeply personal, often sensitive, act of seeking spiritual guidance,” Gupta said.

The offline strategy is also expected to help the company in its listing plans for 2027, after streamlining finances with a new CFO at the helm and top auditors, the offline push is likely to position Astrotalk as a holistic spiritual brand, set to grab a larger slice of India’s $7 Bn faith economy.

Offline Foray: Isn’t It Paradoxical? 

The concept of Astrotalk was to take spirituality to the digital realms. Wouldn’t going back to the physical world defy that image? 

“We realised that there’s a segment of people who ask questions like ‘Is this real?’, ‘Can I trust an online astrologer?’ Or, ‘I want to touch and feel this gemstone before buying’. Offline presence answers such doubts,” Gupta said in an interaction with Inc42. 

The company introduced free initial sessions online years ago to build trust which, according to the founder, is the most crucial capital in this business. Physical stores will only bolster that trust, he said. 

The stores will serve as hybrid hubs, blending in-person consultations with product sales from Astrotalk’s burgeoning ecommerce arm. “Offline, people can see and feel the experience, consult with astrologers face-to-face, and even touch products like gemstones before buying,” he said. There will be three experts in each retail outlet – an astrologer, a tarot reader, and a palmist – drawn from Astrotalk’s pool of over 18,000 astrologers on the digital platform. 

The Astrotalk stores, as Gupta said, would serve two purposes: First, consultations, by helping first-time or sceptical customers experience astrology in a trusted, tangible setting. Second, product sales, particularly for high-value items like gemstones that customers prefer to see physically before buying.

But, what about the hit on the margins from going omnichannel? Setting up stores needs substantial investments, while running the business calls for additional liabilities like infrastructure and manpower. 

Gupta said that the company has considered these factors. “Payment structures for the in-store experts remain fluid – it could be a mix of fixed salaries and revenue shares – to ensure they earn well while aligning incentives. We want them to make good money if they’re sitting there,” he said and stressed how he was working to arrive at an optimal model.

The company plans to leverage its existing pool of astrologers, rotating the top performers to ensure quality.

On Growth Track: What Do Numbers Say? 

The platform, which connects users with astrologers through messaging, voice chat and video calls, has a monthly transacting user base of 1.5 Mn. Repeat businesses, with 25-30% of users who opted for paid service and often returning multiple times, said the founder. 

Its average order value hovers on INR 230 per session, but the sheer volume of transactions and user loyalty drive profitability. 

Astrotalk has seen its profit rising steadily, despite increasing marketing spends, with customer acquisition costs (CAC) holding firm or growing marginally, buoyed by solidifying trust in the brand.

“Visibility is very important in our business. Besides being a first-mover in the spiritual tech business, our marketing execution has been top notch with the kind of talent we hired,” said Gupta. 

“Many spiritual apps are crowding the space. But, I fail to understand why they aren’t able to match Astrotalk. I don’t want to cut on my marketing dollars. I think it has been one of the major contributors to our success.” 

User stickiness, according to him, too has been crucial in the platform’s success. “If users are paying again, it’s because we’re solving real issues in their lives,” he claimed. Many users return after weeks, months, or even a year, convinced by their initial experiences. 

The timing for the offline push couldn’t be better as India’s $58 Bn spiritual economy is exploding with more and more youngsters seeking personalised guidance to fight out uncertainties.

Astrotalk gets its 30% revenue from outside India. It further amplifies its appeal and offers access to overseas users.

Ecom Venture: A Strong Margin Buffer

Astrotalk’s diversification into ecommerce in September-October 2024, according to Gupta, yields 8-10% of its total annual revenues.

Bracelets comprised the bulk of sales until July 2025, when new SKUs like gemstones and crystals gained traction. “We started with bracelets, but now gems are also performing well,” he said. “This ecommerce arm fills a market void as there isn’t one trusted brand in this space.”  

A detailed look into the buying pattern shows that only 30% of ecommerce buyers overlap with the core consultation wing. Most of them are new users, drawn by brand awareness from ads or word-of-mouth. “They knew about us but are  buying for the first time,” he said.

While core consultation still makes up the biggest share of revenue, ecommerce provides a high-margin buffer. Annualised, it could contribute INR 168-180 Cr to revenues this fiscal, assuming steady growth. 

As the ecommerce vertical gathers strength, Gupta plans a devotional venture for online poojas, temple bookings, and prasad deliveries. The CEO said that the company is working on this and building a team before rolling it out later this year.

Tech Edge: Can AI Trump Spiritual Gurus?

At a time when AI permeates everything – from therapy to creativity – its foray into spiritual guidance raises intriguing questions. No wonder, there is a growing curiosity if a chatbot or an AI agent could ever replace the good-old spiritual guru or an astrologer. 

Astrotalk, too, ran an experiment with AI. “We tried an AI profile, and users engaged once, but never returned,” Gupta recounted. 

An internal customer survey revealed that AI lacks empathy, context, and the human touch essential for spiritual queries. “People want someone who understands their emotions, not just data,” he said. Users described the AI responses as “mechanical” and “lacking the reassurance” a human astrologer provides.

This sentiment echoes broader challenges in spiritual AI. Tools like ChatGPT might simulate advice, but they falter on nuances like interpreting birth charts, cultural contexts, or personal connections. “AI can predict patterns, but spirituality has always been about connection,” Gupta said.

But, AI is very much there in the Astrotalk dynamics, playing a supportive role. It is now integrated into the operations. Design teams use it for visuals, marketing for campaigns, and even product tweaks. “We use AI everywhere, except core consultations,” he said. 

Gupta, however, does not see a threat in AI, rather sees it as a tailwind. “If more people try AI and feel it doesn’t work for spiritual advice, it will only push them towards trusted human astrologers. That’ll help our business.”

With millions of consultations and years of data, Astrotalk is well-placed to train AI models in the future. Gupta hints at this possibility but stresses that for now, the emotional and cultural aspects of astrology make human interaction irreplaceable.

Astro, Spiritual Tech: What’s In The Stars?

India’s $58.56 Bn spiritual tech sector is a vibrant fusion of tradition and innovation, with an expected momentum of 10% until 2032. 

Rooted in ancient Vedic practices, the industry has digitised rapidly after the pandemic. Over 900 startups now offer everything from virtual poojas to AI horoscopes, tapping into 500 Mn spiritually inclined Indians. The urban youth, often grappling with career and relationship stresses, have fuelled this growth, as 70-75% of users under 35 contribute significantly to the revenues of spiritual tech platforms. 

To gain an edge over its rivals like Vama and Apps For Bharat in an increasingly competitive spiritual tech market, Astrotalk adopted the subscription-led astrologer consultation model. Its rivals were, however, apprehensive and banked on advertising revenues and devotional engagement. 

Astrotalk has so far mopped up $34 Mn funding from marquee investors like Elev8 Ventures, New York-based Left Lane Capital, and QED Innovation Labs and is in talks with investors to raise $100 Mn more at a unicorn valuation. Gupta said the fundraising talks are on, but refused to share more details. Closest rival AppsForBharat has raised $18 Mn and focussed on a model which lets users create a virtual temple on their phones, enabling them to perform pooja, light diyas, and offer flowers.

Rising demand from youths, who seemed to have far shot past 371.4 Mn in count by 2021, rising disposable incomes in a $2.4 Tn consumer market that’s growing to be the world’s second largest at $4.3 Tn by 2030, a growing demand from the Indian diaspora, and sustained integration of AR temple tours have paved the way for these astrotech and spiritual tech startups to grow. 

Astrotalk’s story exemplifies this boom. From a humble beginning, the startup today empowers 18,000 astrologers, some earning in crores from their global access. “We unlocked markets they couldn’t reach,” Gupta said. He also described how the platform has furnished a ‘crorepati astrologer club’ where the members saw their fortunes swing in a few years after onboarding Astrotalk. 

But, challenges too are written in the stars. Customer acquisition costs, Gupta admitted, will continue to remain high and competition will only increase. Balancing profitability with growth, especially with the capital intensity of offline stores, calls for careful navigation.

Gupta remains unfazed. “Execution and trust are what matter in this space. If people believe in you, they will return. And if they return, the business would grow,” he said.

[Edited By Kumar Chatterjee]