The online astrology consultancy platform AstroTalk has launched its direct-to-consumer (D2C) initiative with the introduction of the ‘Astrotalk Store.’ This new vertical serves as a hub for gemstones and healing stones, all charged with ‘positive mantras and chants’ by experienced astrologers. The product range is designed to not only elevate personal style but also align energies, featuring categories such as Love, Money, and Evil Eye, as stated by the company.
Anmol Jain, Co-founder of AstroTalk, highlighted the substantial demand from customers for genuine remedies. He noted that the launch of the Astrotalk Store addresses this need by providing certified gemstones and tackling the prevailing issue of trust within the market.
Since its inception four months ago, the AstroTalk Store has achieved daily revenue figures between Rs 10-15 lakh, which equates to an annualised run rate (ARR) of Rs 36-45 crore. Projections indicate an ARR of Rs 100 crore by the conclusion of FY25, Jain mentioned.
In the longer term, this D2C venture is anticipated to account for 25-30% of the company’s revenue while also attaining profitability. Furthermore, AstroTalk has announced the availability of its products on platforms like Myntra and Amazon, with plans to expand into the quick-commerce space through Zepto shortly.
The company’s financial performance in FY24 was remarkable, exhibiting a revenue increase of 2.3 times to reach Rs 651.12 crore, while profits saw an impressive year-on-year growth of 11.8 times to Rs 99.99 crore. The Noida-based corporation is projected to double its revenue year-on-year, aiming for approximately Rs 1,250 crore, with an operating profit forecasted between Rs 230-250 crore for the ongoing fiscal year (FY25).
AstroTalk claims to host over 41,000 astrologers on its platform, engaging with more than 450,000 daily users and over 2.5 million monthly users. According to various reports, the Puneet Gupta-led company has raised $34 million to date through two financing rounds.
Astrotalk stands out as one of the remarkable startup success stories, reflecting impressive growth metrics. The funding acquired has primarily been utilised for expansion rather than mere survival, a stark contrast to many startups. Nonetheless, there are concerns that interactions with stringent venture capitalists may lead to unwanted changes within the operational model that has demonstrated considerable success. Issues such as pressure for increased billing, commission cuts, and the introduction of incentive-based pay could alter the landscape for the astrologers, introducing complexities previously unforeseen.
The foray into gemstones appears synergistic but may be too simplistic given the firm’s strategy. There’s a dedicated market segment that regards gemstones with great seriousness, and the existing providers will closely monitor whether Astrotalk will emerge as a partner or competitor. As AstroTalk accelerates its growth and explores new segments, it must ensure it has established a robust foundation for its core astrology business. While this expansion highlights the sizeable market potential, it may also attract numerous competitors looking to create viable businesses based on the astrology model, posing a potential risk as AstroTalk diversifies.
