Do you know why Astrotalk business model has become the talk of the town? Our Indian startup market is one of the toughest ones for startups to survive.A place where numerous startups fail within their first five years, Astrotalk boomed with 4X profit growth and remarkable fortunes.
Its none other than the unique business model of Astrotalk.
Now, you must be wondering- How come a startup linked with the ancient concept of Astrology succeed in this modern world?
Well, that’s the secret formula for its success!
Yeah! How? Stick to this write-up and you will find out soon…
(A) Astrotalk Business Model: A Brief Overview
First of all, let’s understand the foundation stone of Astrotalk.
Astrology is an ancient as well as concept predominantly used by Indus, Greek, Chinese, Egyptian, and Roman civilization. So, India being a part of Indus valley civilization has been home to famous astrologers.
Forget the ancient era, if you look into the traditional hindu marriages, you will see the concepts of “Kundali”, “Rashi”, etc. The sole purpose of all such concepts is-
Afterall, who isn’t interested, curious, and anxious to know his/her future. This loophole of yours became a golden opportunity for Astrotalk. We will continue this story in the next section.
For now, let’s have a brief overview of the company-
|Name of the Company
|Market Valuation (Net Worth)
|Operating Revenue (FY23)
|Total Expense (FY23)
In the world of innovation, how come a startup linked with the ancient concept of Astrology? Well, there’s a background story for this. Go through the next section to delve into the foundation story of Astrotalk business model.
(B) Astrology Prediction: How was Astrotalk Founded?
The story goes like this-
|Astrotalk, a prominent online astrology app, was founded by Puneet, an IT engineer turned entrepreneur, inspired by a life-changing astrological prediction.
|Skeptic turned Believer
|Initially sceptical about astrology, Puneet’s outlook shifted when a colleague accurately predicted his past and future, leading him to consider the potential of astrology.
|In 2015, Puneet left his IT job to start a venture despite reservations. True to the prediction, his first startup closed within two years, prompting him to explore the spiritual domain
|Inspired by the astrologer’s advice, Puneet founded Astrotalk in October 2017, aiming to connect people with genuine astrologers and share the transformative power of astrology.
|Astrotalk has rapidly grown to become one of India’s fastest-growing startups, achieving a daily business of Rs 70 lakh and providing over 2,50,000 minutes of daily consultations.
|Puneet’s vision for Astrotalk is rooted in transforming lives through astrology. He aspires to debunk misconceptions and offer a positive difference by connecting users with authentic astrologers.
(C) Working Strategy: How Astrotalk Works?
The working strategy is the core of Astrotalk business model. How? Because it determines the user base that directly impacts the revenue.
Let’s see the working strategies of Astrotalk business model-
|Seamless navigation to access skilled astrologers for personalised consultations.
|Astrologer Matching Algorithm
|Meticulous algorithm matches users with suitable astrologers based on expertise and preferences.
|Dynamic, real-time engagement with astrologers through calls or chats for immediate exchange of insights.
|Payment Gateway Integration
|Secure and hassle-free transactions facilitated through integrated payment gateways.
|Accessible Cosmic Wisdom
|Demystifying astrology for everyone digitally by blending intuitive design, advanced algorithms, and secure transactions.
Now, let’s dive into the details-
(C.1) User-Friendly Interface
Imagine a traditional scenario, where you want to seek an astrologer for future prediction. What you would do is to look for a traditional pandit, show your birth records, palms, etc. Such a hassle! Isn’t it?
Astrotalk saw this loophole as a golden opportunity. It made the astrologers available to you digitally, just through your mobile phone!
Astrotalk’s journey begins with a user-friendly interface, designed to make the cosmic experience accessible to all. Navigating the platform is as seamless as strolling through constellations.
You can easily find your way to a constellation of skilled astrologers, setting the stage for a personalised cosmic consultation.
(C.2) Astrologer Matching Algorithm
Ever wished finding the right astrologer was as easy as picking your favourite ice cream flavour?
Astrotalk gets that!
Their behind-the-scenes astrologer matching algorithm is like having a cosmic matchmaker—considering expertise, specialties, and even your astro-preferences. You’re not just connecting; you’re meeting the astrologer who’s practically written in the stars to guide you through your celestial queries.
The main expenditure of Astrotalk is done on the hired Astrologers.
(C.3) Real-Time Consultations
Astrotalk brings astrology to life through real-time consultations. You can talk to them just like you do to online medical consultations.
You can engage with your chosen astrologers through calls or chats. This will foster a dynamic interaction where they will share the celestial insights instantly. All you need to do is to provide the following data-
- Date of Birth
- Place of Birth
- Time of Birth
Never knew that the time & place of birth matters too! Well, in astrology, every detail of your birth matters… Because they form your zodiac signs!
(C.4) Payment Gateway Integration
Now, here comes the most interesting part. The payment gateways! Afterall, the Astrotalk business model won’t serve you for free. You need to pay for each consultation.
The smooth transactions of money through UPI or credit/debit cards act as a cherry on the top. These transactions are facilitated through integrated payment gateways.
Astrotalk ensures a secure and hassle-free payment process, allowing you to seamlessly exchange energy for the profound cosmic guidance received.
The fusion of ancient wisdom and modern convenience extends to the financial aspect, creating a harmonious exchange for both users and astrologers.
(C.5) Accessible Cosmic Wisdom
Astrotalk’s overarching strategy is to demystify astrology, making cosmic wisdom accessible to everyone. By combining intuitive design, advanced algorithms, and secure transactions, the platform transforms the age-old practice into a contemporary experience. Astrotalk invites users to a space where ancient insights meet the convenience of the digital age, fostering a genuine connection with the cosmic narrative.
Note: Do you know what happened to Indian startup IPOs in 2023? If not, then check out the article for detailed information.
(D) Revenue Sources: How Astrotalk makes money?
Astrotalk business model earns money through the following revenue sources-
|Users pay for real-time consultations, contributing to revenue as they receive personalised astrological guidance.
|Additional features, like in-depth birth chart analysis or extended sessions, create an extra revenue stream for Astrotalk.
|Recurring subscription fees provide users with exclusive benefits, ensuring a steady revenue stream and user loyalty.
|Selling of Products
|Astrology products related to the protection from evil’s eye
|Partnering with Astrologers
|Astrologers pay fees or commissions for featuring on the platform, creating a collaborative revenue stream.
|Revenue is generated through collaborations featuring sponsored content or promotions related to astrology.
|Relevant advertisements within the platform contribute to revenue, attracting advertisers targeting astrology enthusiasts
Let’s dive into the details-
(D.1) Consultation Fees
Astrotalk generates revenue through consultation fees. Users pay for real-time interactions with experienced astrologers, receiving personalized insights and guidance tailored to their specific questions and concerns. This fee structure forms a fundamental revenue source for Astrotalk, reflecting the value of the astrological expertise provided.
(D.2) Premium Services
Astrotalk offers premium services that go beyond standard consultations. Users can opt for additional features, such as in-depth birth chart analysis, compatibility reports, or extended sessions with renowned astrologers, creating an additional revenue stream for the platform. These premium offerings cater to users seeking more comprehensive and detailed cosmic insights.
(D.3) Subscription Models
Astrotalk may implement subscription models, allowing users to access a range of benefits for a recurring fee. Subscribers could enjoy perks like discounted consultation rates, exclusive content, or priority access to in-demand astrologers. Subscription models provide a steady and predictable revenue stream while fostering a loyal user base.
(D.4) Selling of Astrology Products
Astrotalk earns a good money from astrology products such as-
- Evil eye protectors
- Gemstone consultation
- Kawach (Protective Sheild)
You can consider it as Amazon or Flipkart of astrology products!
(D.5) Partnering with Astrologers
Astrotalk may establish partnerships with astrologers, wherein astrologers pay a commission or subscription fee to be featured on the platform. This collaboration benefits both parties – astrologers gain exposure to a broader audience, and Astrotalk receives revenue from the partnership agreements.
(D.6) Promotional Collaborations
Astrotalk can generate income through promotional collaborations with relevant businesses or brands. By featuring sponsored content or promotions related to astrology, spirituality, or well-being, Astrotalk taps into an additional revenue stream while providing users with curated and relevant offerings.
(D.7) Advertising Revenue
Astrotalk may explore advertising as a revenue source by displaying relevant advertisements within the platform. Advertisers looking to reach a targeted audience interested in astrology and related topics can partner with Astrotalk, contributing to the platform’s overall financial sustainability.
By diversifying revenue sources, Astrotalk ensures a robust financial model that aligns with the diverse needs and preferences of its user base while maintaining the authenticity of its cosmic offerings.
(E) Financials of Astrotalk
Astrotalk is a fast-growing startup with significant revenue growth. In FY23, the company posted revenue of Rs 282 crore, marking a 145% increase from the previous fiscal year. It aims to achieve Rs 600 crore revenue in FY24 and has its sights set on an IPO.
Let’s look at the financials of Astrotalk in FY22 and FY23–
The company operates as an astrology service provider, offering domestic and international payment options to expand its customer base and has seen considerable success in the astrology market in India. Astrotalk also reportedly does a daily business of Rs.70 lakh and has experienced rapid growth, making it one of the leading startups in India.
(F) Marketing Strategies of Astrotalk Business Model
Do you know the marketing strategies act as the superpower of Astrotalk business model? Look at the pop-ups of Astrotalk-
- When will I get a government job?
- Will my ex-come back?
- When will I get married?
- How will my health be next year?
All such questions end with the headline- “Consult an astrologer.”
These catchy quotes and questions arise a bug of curiosity in the individuals. No matter whether you believe in Astrology or not, you will find the answer for such questions if it is for free!
That’s the reason for why the first consultations in astrology apps are always free. Afterall it is a strategy for customer acquisition!
Some of the commonly used marketing strategies by Astrotalk business model are-
(F.1) Digital Presence and Branding
Astrotalk strategically builds a robust digital presence, leveraging social media, search engine optimization, and online advertising to enhance brand visibility. The platform employs consistent branding across various channels, fostering recognition and trust among the audience.
(F.2) Content Marketing
Astrotalk invests in content marketing to educate and engage its audience. Through blog posts, articles, and video content, the platform shares valuable insights into astrology, horoscopes, and related topics. This not only attracts potential users interested in astrology but also establishes Astrotalk as a credible source of information.
(F.3) Influencer Collaborations
To expand its reach, Astrotalk collaborates with influencers in the astrology and spirituality niche. Influencers share their experiences with Astrotalk, providing authentic testimonials that resonate with their followers. This strategy helps tap into existing communities and build a broader user base.
(F.4) User Testimonials and Reviews
Astrotalk prioritises user testimonials and reviews as a key element of its marketing strategy. Positive feedback from satisfied users serves as social proof, instilling confidence in potential users and encouraging them to explore the platform for their astrological needs.
(F.5) Referral Programs
Astrotalk incentivizes its users to become brand advocates through referral programs. Users are encouraged to refer friends and family, earning rewards or discounts in return. This organic word-of-mouth marketing helps attract new users while rewarding the existing community.
(F.6) Seasonal Campaigns and Events
To keep the audience engaged, Astrotalk runs seasonal campaigns and events tied to astrological events, festivals, or significant celestial occurrences. These campaigns create excitement, drive user participation, and align the platform with timely and relevant themes.
By implementing these diverse marketing strategies, Astrotalk ensures a multifaceted approach to reach, engage, and retain its audience in the dynamic and ever-evolving landscape of online astrology services.
(G) Future Plans of Astrotalk: IPO in next two years
Astrotalk, the astrology consultation app, is considering an IPO in India by 2025-26, aiming for Rs 2,000 crore in revenue. Currently evaluating options, the company reported a significant surge in revenue and profit in FY23.
Operating on a revenue-sharing model with over 15,000 astrologers, the platform is expanding globally, targeting regions like Canada, the US, New Zealand, and Europe. Astrotalk plans an employee stock option buyback by the end of 2023, and amidst ongoing fundraise talks, it aims for a valuation between $200 million to $250 million.
The company, with over 30 million registered users, uses online ads and celebrity endorsements to drive growth.
(H) Wrapping up Astrotalk Business Model
In conclusion, the dynamic Astrotalk business model marries ancient wisdom with modern innovation, creating a thriving platform for astrological consultations. Fueled by founder Puneet Gupta’s transformative experience, the company embraces a user-centric approach, offering personalised insights through a diverse pool of astrologers.
With robust revenue streams from consultations, premium services, and strategic partnerships, Astrotalk’s rapid growth is evident. The platform’s global expansion, commitment to user trust, and plans for an IPO showcase its resilience and vision. Astrotalk emerges not just as an astrology app but as a cosmic companion, connecting millions with the profound wisdom of the stars!