Initially skeptical of astrology, Puneet Gupta, Founder and CEO of Astrotalk, transitioned from disbelief to success in the field. Despite being an unconventional choice for a tech venture, he emphasized in an interview that astrology and devotional services are often overlooked options. Astrotalk, however, recognized the potential, strategically leveraged technology, and capitalized on the opportunity. Gupta highlighted that understanding Indian demographics played a pivotal role in gaining a competitive edge, ultimately establishing Astrotalk as a successful enterprise in the astrology business.
In 2023, the company revenue hit 285 cr, with forecasts projecting over 600 cr and a 100 cr profit in FY-24. The CEO aims for a remarkable target – crossing 2000 cr by 2025-26. Unlike the first astrology app in India, Astrotalk disrupts the astro industry with a unique strategy. Beyond the numbers, the strategy involves redefining the spiritual industry by seamlessly merging tradition with modern tech, creating a profitable platform. This approach positions Astrotalk as a pioneering force in the evolving landscape of spiritual tech.
Let’s delve into the success story of Astrotalk which is disrupting India’s astrology market with the help of technology….
Story Behind the Astrotalk:
Before 2015, Puneet led a comfortable life in the IT sector, enjoying a decent salary and a relationship with his affluent girlfriend. However, a breakup abruptly altered his course. The fallout, fueled by the clash between his girlfriend and middle-class values, became a pivotal moment.
The day after the breakup, Puneet made a spontaneous decision. He resigned from his job, seeking a different path to financial success. Always harboring a desire for a product-based business, he ventured into entrepreneurship, co-founding a small startup in 2015.
The startup thrived initially, but a revelation about the limited utility of its product led to its closure. Adapting to their expertise in app development, the company transitioned from a product-based to a service-based model, catering to old clients seeking app development.
However, the tide turned in 2017 when Puneet’s partner departed, leading to the closure of the business. The narrative of this transformation and eventual closure was shared by a colleague from Puneet’s previous job, an unexpected source—a hobbyist astrologer.
Immediately following the shutdown of his startup, Puneet reached out to his astrologer colleague. Intrigued by the astrologer’s assurance that a better phase was ahead, Puneet sought guidance. Convinced of astrology’s impact, he delved into research, exploring astrology apps and revenue data on the Ministry Of Corporate Affairs official site.
Empowered by newfound belief, Puneet made a swift decision. He resolved to create a user-friendly astrology app, a venture he named Astrotalk in the same year that is 2017. This unplanned transformation marked a pivotal moment in Puneet’s journey, blending his entrepreneurial spirit with the insights gained from astrology.
About Astrotalk:
In India, astrology permeates daily life, influencing decisions from marriage to career. Predicting the future holds universal appeal, but finding a certified astrologer in today’s fast-paced world can be challenging.
Recognizing this gap, Puneet conceived an idea — a virtual astrology app offering enhanced usability and convenient horoscope consultations. To realize this vision, he compiled a list of around 15,000 qualified astrologers around India. This innovative approach aimed to seamlessly integrate astrology into people’s lives, making predictions more accessible in the modern era.
Initially, the app was designed with a focus on the older generation and residents of Tier-2 and Tier-3 cities. However, statistics defied expectations. Surprisingly, about 85% of the app’s users are from metropolitan and tier-1 cities, predominantly falling within the age group of 18-35. Further analysis revealed a concentration of young users hailing from North Indian states. This unexpected demographic shift prompted the developers to reassess their target audience and tailor their approach accordingly.
With the customer base now reaching 5 million per month, the app has witnessed a surge in user engagement. Notably, a substantial portion of the queries, around 60% revolve around relationships and marriage, highlighting the growing trust in astrology for personal matters. Additionally, 30% of the inquiries are centered on careers and businesses, underscoring the app’s influence in guiding users through diverse aspects of their lives. This evident shift in user behavior emphasizes the increasing belief and reliance on astrology facilitated by the app.
Key Features:
The developers along with the CEO and his newly joined Co-founder Anmol Jain who joined the platform in 2021 have planned and added some new features to the existing features. That helped them in more customer engagement and profitability. Here is the list of old and new features associated with the app.
- Instead of hi-tech looks, Puneet and his team developed this app which is similar to using WhatsApp and Instagram. That means a user-friendly interface.
- They introduced elements such as video calls, audio calls, and chat options, allowing users to connect seamlessly with astrologers. These additions not only bolstered the user experience but also provided a secure and confidential space for individuals seeking astrological consultations.
- Just three months ago, the developers introduced a novel feature allowing users to book e-poojas. This innovative addition encompasses various rituals like Kala-Sarpa Nibaran Pooja, Love-relationship obstacle pooja, Loan Mukti Pooja, and more.
- Additionally, a new section named “Astromall” was seamlessly integrated into the app’s home page. This section serves as a virtual marketplace where users can conveniently purchase various items such as gemstones, Rudraksha, Kawach, and more.
- Based on the insightful analysis of customer queries, a clear trend emerges – users are turning to astrology in their quest for mental peace. Acknowledging this crucial aspect, the CEO is now planning to augment the app’s offerings by hiring mental wellness professionals.
- Recently, the app introduced an array of new astrology features, including Reiki healing, Palmistry, Tarot card reading, Theta healing, and more. Notably, customers have shown a keen interest in these additions, signaling a positive response to the diversification of astrological services.
Business Model And Revenue Model Of Astrotalk:
Astrotalk’s outer business model draws a parallel with the simplicity of Uber. Upon opening the app or website, the user interface mirrors the user-friendly design. Much like Uber, the process is straightforward—choose an option from the homepage, whether it’s chatting with an astrologer, talking with an astrologer, booking a pooja, or any other service. After selecting the desired option, users seamlessly proceed to payment and gain access to their chosen service.
Despite the outward simplicity of the business model, Astrotalk’s revenue model is not that simple. Puneet and his team have diligently worked to ensure profitability, a dedication that reflects in their resounding success. Let’s discuss the internal business model that helps gain revenue.
Building a low-latency RTC( Real-Time Communication) Platform:
To enhance the video calling experience, the developers incorporated Agora software, ensuring highly effective and low-latency RTC live streaming. Presently, the company conducts over 100 live streams regularly, significantly contributing to efficient customer management. This strategic addition has played a pivotal role in the app’s rapid growth, attracting over 30 million subscribers in and around India.
Brand Marketing:
Strategically, Astrotalk fortifies its digital presence through social media, search engine optimization, and online advertising. By maintaining consistent branding across diverse channels, the platform not only enhances visibility but also cultivates recognition and trust among its audience.
Approaching Seller-First Marketplace:
Astrotalk operates on a model where most of the income, approximately 85-90%, is derived from one-to-one consultations with astrologers or sellers. In this system, customers pay per minute for sessions. Notably, it doesn’t levy charges on astrologers; instead, it opts for a commission-based approach, charging a fee for each transaction between customers and astrologers.
Furthermore, the commission structure is variable, ranging from INR 10 to INR 200 per minute. This variability is contingent upon factors such as the session’s quality, the level of engagement the astrologer maintains with the customer, and the demand for specific astrologers.
Additionally, some astrologers pay to advertise themselves through this platform which is also another source of income.
Content Marketing:
Astrotalk strategically invests in content marketing to educate and engage its audience. Through blog posts, articles, and video content, the platform shares valuable insights into astrology and related topics. This approach not only attracts potential users but also solidifies Astrotalk’s position as a credible source of information in the field.
Funding and Advertising:
Now, as part of its pre-IPO funding round, Astrotalk is actively engaging with growth and mid-size private equity funds, along with family offices, to secure up to $40 million (approximately ₹333 crore). This funding round, backed by Kunal Shah’s Qed Innovation Labs, positions the company’s valuation at $220 million. Looking ahead, the firm plans to channel these funds into strategic investments as it gears up for a public debut in FY25.
Effectively leveraging social media, the company has adopted a strategic approach to boost app visibility. By enlisting the support of Bollywood actresses, the app is being promoted across Facebook, Instagram, and YouTube. This targeted marketing effort is proving successful, ultimately contributing to increased revenue.
Targetting International customers:
Currently conducting 15% of its business beyond India, Astrotalk is poised for further global expansion. To facilitate this, the platform has introduced non-Indian horoscopes, including Tarot reading, Reiki healing, Psychic readings, and various other horoscope reading services. In the international market, Astrotalk is in direct competition with platforms such as Keen.com and Kasamba.
How Does It Earn Money?:
These are various ways through which the company earns most of their income. Let’s discuss the following points..
- Astrotalk’s 65% of income comes from chat consultations with astrologers, 35% from audio calls, and 5% from live streaming and online poojas or worships.
- They earn an average of 1500 INR per month from repeat customers. New members spend 200 to 500 INR per month.
- They offer premium services other than consultation fees. The services include in-depth birth chart analysis, prolonging of existing sessions, compatibility tests, and other required features which are other sources of income.
- Diversifying its revenue streams, Astrotalk ventures into selling astrological products through Astromall. By seamlessly integrating Astromall into its platform, Astrotalk aims to cater to the growing market demand for astro products while providing users with a holistic and engaging astrological experience.
- Moreover, collaboration and promotional ads have become an additional source of income for Astrotalk. By engaging in strategic partnerships and advertising initiatives, the platform is expanding its revenue streams and bolstering its financial outlook.
Conclusion:
In conclusion, Astrotalk stands as a dynamic and diversified platform in the realm of astrology services. From its core one-to-one consultations to strategic digital marketing, international expansion, and innovative income streams like Astromall and collaboration ads, the company showcases adaptability and resilience in navigating the evolving landscape. Astrotalk’s commitment to providing a comprehensive astrological experience, backed by financial prudence and strategic growth initiatives, positions it well for continued success in meeting the diverse needs of its user base.
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