Flipkart Explores the Astrology and Spirituality Market with Potential InstaAstro Acquisition
E-commerce giant Flipkart is currently exploring the possibility of entering the astrology and spiritual marketplace by potentially acquiring InstaAstro. The growing interest and significant investments in startups within this sector over the past year indicate a notable shift towards consolidation in this evolving industry.
A source, who wished to remain anonymous, stated that InstaAstro has been actively seeking buyers, with Flipkart positioned as a leading candidate for the acquisition. The Walmart-backed company is reportedly contemplating a purchase amount between $18 million and $25 million, which would include both cash and shares.
InstaAstro has attracted prominent investors such as Artha Venture Fund, LogX Ventures, Singularity Ventures, and Blume Founders Fund, as well as Ramakant Sharma’s LogX Ventures. The startup has raised around Rs 21.7 crore ($2.6 million) across two funding rounds since its inception in 2021.
There are indications that Flipkart might consider rebranding AstroTalk as “Sukh” following the acquisition.
Founded by Nitin Verma, InstaAstro offers a variety of services such as horoscopes, tarot readings, and numerology, available in English, Hindi, and several regional languages. Following its recent funding, the company expanded its offerings to include spiritual e-commerce products, daily pooja services, and reiki healing.
Another anonymous source mentioned that Flipkart previously engaged in discussions with several startups in the astrology and spirituality domain, though those negotiations did not materialise.
As of the latest update, there was no response to inquiries submitted to Flipkart and InstaAstro on Wednesday evening.
InstaAstro’s operational revenue nearly doubled to Rs 25 crore in FY24, compared to Rs 12.96 crore in FY23. However, reports indicate that the company’s losses also increased, reaching Rs 8.11 crore from Rs 4.26 crore in FY23. Various sources suggest that InstaAstro maintains an average revenue run rate (ARR) of Rs 50-60 crore.
InstaAstro competes with several players in the market, including GaneshaSpeaks, AstroTalk, Click Astro, and Bodhi. Notably, AstroTalk distinguishes itself with both substantial investment and profitability. Under the leadership of Puneet Gupta, AstroTalk reported a revenue of Rs 651.12 crore in FY24, with profits approaching Rs 100 crore, and is targeting Rs 1,250 crore in revenue for FY25.
Data from various sources reveals that startups within the astrology and spiritual technology landscape, such as AstroTalk, Vama, Ustav App, DevDham, InstaAstro, and Melooha, have collectively secured over $65 million in investments in the past 18 months. The sector has also witnessed consolidation, exemplified by BrahmVeda’s acquisition of Vedvaani and Melooha’s purchase of Munitalks.
