Astrotalk will utilise the funds for strategic acquisitions to expand in international markets, solidify new business verticals, and hire senior leadership roles.
Astrotalk, which provides astro and religious-spiritual solutions, has raised a $20 million Series A from Left Lane Capital, a New York-based venture capital firm that invests in high-growth consumer and internet technology companies.
The company, as stated in a press release, will utilise the funds for strategic acquisitions, expanding into international markets, solidifying new business verticals, and hiring senior leadership roles. Additionally, the funds will be devoted to developing its devotion offerings and expanding operations in South India.
Founded in 2017 by Puneet Gupta and Anmol Jain, the company is a globally managed marketplace that connects consumers to astrologers for horoscope readings, birth chart analysis, live prayers, and more.
The platform claims to have onboarded over 15,000 active astrologers and has served more than 4 crore users to date.
“Astrotalk is a 'Made in India, Built for the World' company, eyeing expansion across the US, Canada, UK and the Middle East. One-on-one consultations stand to be approximately 95 per cent of our revenue with about 20 per cent of the revenues coming from outside of India,” said Puneet Gupta, founder and CEO of Astrotalk.
“Astrotalk grew, in a bootstrapped fashion, to the undisputed local market leader for digital astrology practice in India, the birthplace of the practice; we are highly confident in their abilities to achieve similar success on a global playing field,” said Harley Miller, CEO and managing partner of Left Lane Capital.
Earlier in the first week of February, the company, in its filing with the Registrar of Companies (RoC), stated that its board had approved the issuance of 11,211 Series A compulsory convertible preference shares (CCPS) to the VC firm at an issue price ranging from Rs 1,38,601 to Rs 1,45,531 each.
In just more than 6 years of existence, the company has performed impressively on the profitability front. In FY23, it reported a revenue of Rs 282 crore with a profit of Rs 27 crore, which was almost 4 times higher than the previous year.
The company claims to have witnessed an ARR of approximately Rs 800 crore in 2023-24 and a 100+ per cent year-on-year revenue growth in the last three years.
According to a report by Inc42, the Indian religious and spiritual market reached a value of $58.56 billion in 2023 and is projected to grow at a compound annual growth rate (CAGR) of 10 per cent from 2024 to 2032. This growth trajectory suggests that the market could expand to approximately $150 billion in less than a decade.