Astrotalk-Hornbill Funding Deal Falls Through at Unicorn-Valued Round; Here's Why

Astrology start-up Astrotalk has seen a major investment deal slip through the stars. An India-focussed hedge fund Hornbill Capital, which was in advanced talks to invest $100-120 million at a unicorn valuation, has reportedly backed out, according to a report published by MoneyControl.

The move would have tripled the eight-year old company’s valuation from $300 million within two years. However, the report revealed that the hedge fund expressed discomfort over the “Not Safe for Work” content.

The investor found such content like explicit videos and chats on Astrotalk’s platform during due diligence. “…no investor wants to take on that kind of a risk and have exposure to a grey area,” a source close to the matter told the news publication.

On the contrary, other sources told MC that the deal failed to materialise due to “mismatch” in valuations. It stated that the two sides were not on the same page as Astrotalk wanted a higher valuation or dilute lesser equity.  

“It is also likely that some of Hornbill’s executives invest in Astrotalk in their personal capacity. The round is anyway being optimised for valuation, the company doesn’t need money for operations,” the source told MoneyControl.

The spiritual tech’s upcoming fundraise is likely to be dominated by a secondary share sale, with founders Puneet Gupta and Anmol Jain parting a portion of their stakes. Gupta holds roughly 72% in the company and Jain about 3%, the report added.

Astrotalk offers users access to verified astrologers who provide personalised guidance based on individual birth details and life situations. It earns money by connecting users with verified astrologers. The company is also exploring additional income sources through offline stores and a range of new products and services.

Earlier this year, co-founder Anmol Jain highlighted that more than 40,000 astrologers on the platform collectively earned ₹511 crore in FY25. Some media reports suggested that the start-up ended FY25 with ₹1,200 crore in revenue, up from ₹651 crore in FY24, while profits surged from ₹100 crore to ₹250 crore.

Last year, the platform had secured ₹78.3 crore in an extension of its Series A round from existing investors Left Lane Capital and Elev8 Capital. Left Lane Capital contributed ₹58.3 crore, while Elev8 Capital added ₹20 crore. This capital injection occurred at a valuation of about ₹2,500 crore ($300 million). 

The astrology market is booming in India. Similar to Astrotalk, there are several other online astrology platforms, such as Astroyogi, Astro Sage, Indian Astrology, and others. Similarly, a report by Redseer Strategy Consultants says that currently, at $350+ billion, India’s faith and religious products market is ripe for tech disruption across segments.