Astro and spiritual tech startups are gearing up for a potential funding bonanza during the upcoming festive season, despite a recent slowdown in funding activity. Venture capital firms are increasingly showing interest in investing in this niche sector.
One notable example is AstroTalk, an online astrology platform, which is currently in the process of raising $25-30 million in a growth equity round. Meanwhile, its competitor, Vama, a virtual astrology and spiritual platform, is finalizing a round of $1.5-2 million, with a global VC leading the way and existing investors doubling down on their support.
Similarly, Devotional app DevDarshan, which facilitates online daily darshan, pujas, and digital donations in temples, has simultaneously secured capital in the range of $700,000 to $800,000 in a new funding round. Notable investors, such as All in Capital, Veda, and Titan Capital, participated in this round. DevDarshan, based in Noida, initially raised seed funding in May 2021.
According to Expert Market Research, the Indian religious and spiritual market, valued at $44 billion in 2020, is expected to grow at a CAGR of 10% between 2023 and 2028. This growth is driven by India’s rich cultural and spiritual heritage, attracting millions of visitors to various pilgrimage sites throughout the year. However, despite being deeply rooted in Indian culture, these startups still face the challenge of building sustainable businesses that can turn a profit. Like many direct-to-consumer (D2C) firms, they rely on discovery and word-of-mouth publicity. It is utmost important for them to increase spending on marketing and advertising. The key difference is that these startups operate with minimal physical assets, relying on venture capital funding, which can be precarious without a solid and sustainable business model.