Pandemic a blessing in disguise for astrotech companies, shows data

The online astrology space has grown sixfold in a decade, and the number of companies founded trebled during the pandemic.

Only five astrotech companies were founded in 2013. In 2018, 23 more online astrology startups were founded. Starting then, the period of growth peaked in 2020 when 86 online astrology businesses were founded (see chart 1). 

However, the trend saw a reversal in the subsequent years, with the addition of 67 and 30 new companies in 2021 and 2022, respectively, data from Tracxn revealed.

Despite the slowdown in the number of new companies, the online astrology market continues to grow. In 2017-2018, the annual revenue in the market was $5.8 million. This increased to $17.7 million in FY21 and $22.4 million in FY22 (see chart 2).

Advancements in technology have improved user experience with more personalised and detailed assessments, according to Tracxn Co-founder Neha Singh.

“The subscription-based models and in-app purchases adopted by these apps offer a sustainable revenue stream, further attracting investors keen on long-term viability and profitability within the astrology app space. There is no funding activity in the area this year, but multiple startups are reported to be in talks with investors to raise funds,” she says.

Funding for Indian online astrology increased significantly in 2021. In 2018, the total funding amounted to $0.89 million. It fell to $0.05 million in 2019, but rebounded to touch $2.1 million in 2021 (see chart 3).

The valuation of the top nine players —Astrotalk, Bodhi, Astrovision, AstroVed, Select Astro, GaneshaSpeaks, Guruji, OMI, and Taaraka — in the market has now reached $10 million.