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Astroyogi surpasses Rs 85 Cr revenue in FY24 with sound economics

Entrackr · 17d

Astroyogi surpasses Rs 85 Cr revenue in FY24 with sound economics Astroyogi’s revenue from operations grew to Rs 84.3 crore in FY24 from Rs 66.7 crore in FY23, its annual financial statements sourced from the Registrar of Companies (RoC) show. The online astrology sector has been experiencing rapid growth in recent years, and bootstrapped firm Astroyogi is no exception. The Gurugram-based company reported a 26.3% year-on-year revenue increase in the last fiscal year while maintaining strong unit economics. Astroyogi’s revenue from operations grew to Rs 84.3 crore in FY24 from Rs 66.7 crore in FY23, its annual financial statements sourced from the Registrar of Companies (RoC) show. Astroyogi is a digital astrology consultancy platform that connects users with professional astrologers through its mobile and web apps. In FY24, online consultancy services generated 98.3% of the company’s total operating revenue, amounting to Rs 82.9 crore. The remaining revenue came from product sales through its YogiStore. Notably, revenue from overseas markets contributed 27.2% of Astroyogi’s total operating revenue. The firm also generated Rs 1.08 crore from interest and investment gains, bringing its overall income to Rs 85.3 crore for the fiscal year ending March 2024. Similar to other online astrology firms, content and astrology fees given to astrologers/cartomancers were the largest cost center for Astroyogi, accounting for 46.5% of the overall expenses. To the tune of scale, this cost increased by 23% to Rs 39.7 crore in the last fiscal year. Its spends and employee benefits shot up by 33% and 29%, respectively, to Rs 24 crore and Rs 12.5 crore in FY24. The overall cost of the company grew by 28% to Rs 85.3 crore in FY24. Despite the growing scale, increased advertising expenses for the bootstrapped firm impacted the company's profits before tax, which fell to Rs 31,000 in FY24, down from Rs 2.1 crore in FY23. On a unit level, it spent Rs 1.01 to earn a rupee during the last fiscal year. The company directly competes with AstroTalk which targets Rs 1,250 crore revenue in FY25 and registered 651 crore revenue with a hefty Rs 100 crore profits in FY24, and InstaAstro, which is in talks to be acquired by Flipkart and posted Rs 25 crore revenue in FY24. The boom in astrology services has seen business models evolve, and that in turn continues to put pressure on firms to get more out of every customer. With the kind of pay per minute models most have gone with, it is only a matter of time before newer, more dedicated offerings emerge. While we are not privy to details, it’s a safe bet to assume that the Pareto principle will be at work in these firms too, with 20% of customers possibly generating 80% of revenues. While that has already meant some star astrologers seeking to build their own followings independently, it could lead to the inevitable fight for ‘top-tier’ talent soon. As one of the few categories where profits have flowed quickly, it should be interesting to see how these firms evolve in the coming months and years.