In India, astrology is in high demand, and AstroTalk has emerged as a market leader in spiritual technology. Similar to FY23, the Noida-based company had over two-fold growth in the fiscal year ending March 2024, with profits increasing over 12-fold.
AstroTalk's revenue from operations increased 2.3 times to Rs 651.12 crore in the previous fiscal year from Rs 283.32 crore in FY23, according to its annual financial statement submitted with the Registrar of Companies (RoC).
AstroTalk is a digital astrology consultancy company that connects users with professional astrologers through mobile and online apps. In FY24, its income from India increased by two times to Rs 529.6 crore, while revenue from foreign countries (export) increased by 4.2 times to Rs 121.44 crore. Aside from operational revenues, the company generated an extra Rs 8 crore in interest, bringing total revenue to Rs 659 crore in FY24.
Employee benefit expenses accounted for 5.5% of total expenses and grew by 28.29% year on year to Rs 29.61 crore in FY24. Advertising and promotional expenses rose by 116% to Rs 162.68 crore in the previous fiscal year. Importantly, legal and professional fees accounted for 60% of overall expenses, rising by 103% to Rs 319 crore in FY24. Finance, software, and website upkeep were additional expenses that increased AstroTalk's overall cost by 97.9% to Rs 531 crore in FY24.
AstroTalk earned an unprecedented 11.8X year-on-year profit growth, reaching Rs 99.99 crore in the fiscal year ended March 2024. Its ROCE and EBITDA margins were 40.16% and 19.42%, respectively. The company spent Re 0.82 to earn one rupee of operating revenue in the previous fiscal year.
Despite a number of hurdles, astrology and spiritual technology firms have received significant funding. According to data from TheKredible, startups in this industry, including AstroTalk, Vama, Ustav App, DevDham, InstaAstro, and Melooha, have raised about $60 million in the last 15 months. AstroTalk, managed by Puneet Gupta, alone raised $34 million in two rounds this year.
While many will be surprised, if not disappointed, by the success of astrology-based apps and enterprises, it must be noted that the figures we see are a direct result of the economy's formalization. Segments from which one would never have expected tax contributions are now contributing to the exchequer, and that is the least we should be grateful for.
Returning to the company itself, one wonders if the old cliche about people turning to astrologers when things are rough is still valid, given there is no hint of misery to explain the success of these enterprises. If anything, it appears to be a direct result of the current consumerist economy, in which people want everything immediately or as fast as possible, and are willing to go to any length to obtain knowledge.
Astrotalk is expected to grow rapidly and will most likely not require investment to get there. In fact, the sole prediction for the future is whether this company would go so far as to offer an exit through an IPO, or if its investors will be bought out privately. That's a challenging topic for an astrologer.
