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Exclusive: Flipkart may foray into astrology with InstaAstro takeover

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Exclusive: Flipkart may foray into astrology with InstaAstro takeover E-commerce giant Flipkart is exploring an entry into the astrology and devotion sector through a potential acquisition of astrotech startup InstaAstro. While startups in this niche have attracted substantial funding over the past year, this move would represent a significant step toward consolidation in the emerging space. "InstaAstro has been seeking buyers for the past few months, with Flipkart emerging as one of the leading contenders for the acquisition," said a source on condition of anonymity. "The Walmart-owned company may spend anywhere between $18 to $25 million, including cash and stocks, for the acquisition." Backed by the likes of Artha Venture Fund, LogX Ventures, Singularity Ventures, Blume Founders Fund, and Ramakant Sharma’s LogX Ventures, InstaAstro has raised around Rs 21.7 crore ($2.6 million) across two funding rounds since its inception in 2021. Flipkart may rebrand InstaAstro to “Sukh” post acquisition, said sources. Founded by Nitin Verma, InstaAstro offers horoscopes, tarot readings, and numerology in English, Hindi, and various regional languages. After the latest funding, the startup also launched new spiritual e-commerce, daily pooja, and reiki healing services. “Flipkart had engaged in talks with a couple of startups in the astrology and devotion space. However, those talks didn’t work out,” said another source who also wished not to be named as the talks are yet to be public. Queries sent to Flipkart and InstaAstro on Wednesday evening remained unanswered at the time of publication. InstaAstro’s revenue from operations surged nearly 2X to Rs 25 crore in FY24 from Rs 12.96 crore in FY23. As per TheKredible, its losses also jumped at a similar pace to Rs 8.11 crore from Rs 4.26 crore in FY23. Sources assert that InstaAstro has an average revenue run rate (ARR) of Rs 50-60 crore. InstaAstro competes with GaneshaSpeaks, AstroTalk, Click Astro, Astroyogi, and Bodhi. Among them, AstroTalk leads in both funding and profitability. The Puneet Gupta-led company reported a revenue of Rs 651.12 crore in FY24, with a profit of nearly Rs 100 crore, and aims to reach Rs 1,250 crore in revenue for FY25. Data from TheKredible reveals that startups in the astro and spiritual tech sector, including AstroTalk, Vama, Ustav App, DevDham, InstaAstro, and Melooha, have collectively raised more than $65 million over the past 18 months. The sector also saw consolidation as BrahmVeda acquired Vedvaani and Melooha took over Munitalks.