How Astrotalk earns Rs. 1.65 Cr daily? 🤔

Hey there,

Backed by Kunal Shah, Astrotalk is redefining astrology.

It earns ₹1.65 Cr DAILY by digitizing a traditionally offline service.

And, has over 4.3 Crore users. How?

First, here is some context. Astrotalk, an online future-telling app, serves over 4.3 Cr Indians. People use this app to consult astrologers, numerologists, and other experts who claim to predict the future using various methods like palmistry, star alignment, birth dates, etc

The journey of Astrotalk began in 2017. Its founder, Puneet Gupta, was initially skeptical about astrology. However, a personal experience in 2014, where a prediction by an astrologer-friend came true, changed his perspective and the course of his life. Which led him to start Astrotalk.

And here is how Astrotalk cracked the code:

1. Adapting to changing times with consistent beliefs:

In India, significant life events, from births to weddings to buying a new house, usually involve consulting a 'pandit' to ensure everything aligns with astrological beliefs.

Astrotalk understood that while times change, some beliefs are deep-rooted in Indian Mentality.

Recognizing the shift to online platforms, Astrotalk tapped into a market that was traditionally offline and unorganized, attracting an audience that will use online fortune-telling services without thinking twice.

2. Event-Driven Business Model:

Astrotalk's user base primarily seeks guidance for significant life events like exams, business ventures, marriages, or major purchases.

The company profits from a simple 'pay-per-minute' model, avoiding the usual monthly subscription model.

Prices range from INR 10 to 200 per minute, and when it's about your future, you tend to talk longer, hence paying more.

3. High-Value Marketing Strategies:

In a business where trust is everything. Astrotalk ensures credibility through high-profile marketing campaigns. They've collaborated with celebrities like Mouni Roy, Ranbir Kapoor, Virender Sehwag, and many more.

They've also done marketing stunts like offering Rs. 100 Crore in Astrotalk credits if India won the cricket World Cup (a prediction they knew wouldn't come true)

4. Global Appeal of Astrology:

Astrotalk's strategy didn't just focus on India. They expanded their marketing globally, understanding the worldwide interest in astrology. Now, about 15% of their revenue comes from international clients.

Astrotalk has successfully digitized a traditional service, organizing a fragmented market, and tapping into the right market at the right time. Now, they're on track to hit 100 Cr in profits, thriving in India's $58 billion spiritual market.

The challenge ahead is competing with other players like Astrosage, AstroYogi, AstroBuddy, Ganeshaspeaks, AppsForBharat, and numerous unorganized service providers. Their ambitious goal is to reach 2000 cr in revenue before IPO. Only time will tell if they achieve this milestone.

✍️ Jargon of the day

Online Marketplace - An online marketplace is like a digital shopping mall. Just as a mall has many different shops, an online marketplace has many different sellers offering their products or services.

In the case of Astrotalk, think of it as a virtual space where people looking for astrological advice can meet and talk with professional astrologers. Astrotalk connects these two groups – those who need astrological guidance and those who provide it – all through their online platform.

Loved this edition? Or have some thoughts to share? We'd love to hear from you

Cheers,
Karthik