Astrotalk taps PE funds to raise $40 million in pre-IPO round

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Mumbai: Investors in the Indian stock market will soon have the opportunity to invest in a novel business enterprise, adding to the diversity of companies available in the market. Astrotalk, the online astrology consultation services provider, is currently in talks with growth and mid-size PE funds and family offices to raise up to $40 million (around ₹333 crore) as part of its pre-IPO funding round, valuing the company at $220 million, people familiar with the company’s plans said. The firm, backed by Kunal Shah’s Qed Innovation Labs, aims to go public in FY25, said Astrotalk CEO Puneet Gupta.

This would be the company’s first institutional round, he said. “We need to realign our cap table ahead of the IPO and hence are in talks to raise a PE round," he said, without sharing details of the funding round. It has appointed investment bank Illuminate to help it with the process.

It derives around 85% of its revenues from tier I cities nd metros, Gupta said. “The average age of our customers is around 18-35, with almost 60% consultations being relationship and marriage-related," he said. According to him, around 30% of the consultations are for career and business.

The platform earns around ₹1.8 crore a day in consultations with its revenues for FY23 being around ₹285 crore. The current revenue run rate, according to Gupta, is around ₹600 crore and the firm is expecting to close the financial year at ₹650 crore in topline. “We have been profitable for some time.

We are likely to close FY24 with ₹100 crore of Ebitda," he added. It is looking to add vernacular ads in to tap into tier II and tier III cities. The company, that is heavily focused on the market in North India will also expand its offerings in the South, which is