A successful startup amidst failing ones
Amid the financial turbulence of FY23, when 75% of new-age tech startups reported losses totalling a staggering INR 71,112 crore, one startup stood out for its unexpected success. Astrotalk, a tech company offering astrology services, has defied the odds and emerged profitable with a unique value proposition that resonates with its audience. By creating a marketplace that connects users with a network of astrologers, Astrotalk guides them in times of uncertainty. Its remarkable achievements in profitability, revenue growth, and fundraising, including a recent $14 million investment led by Elev8 Venture, have captured widespread attention.
The Young Generation’s Connection with Astrology
Astrotalk’s success is a reminder that aligning innovation with consumer needs can lead to growth even in tough times in an industry riddled with losses. But why is astrology as a service relevant now? A 2021 study by an American think tank found that 44% of the population believes in astrology. In India, belief in astrology is widespread, but the market is highly fragmented. Many families have personal astrologers for everything from choosing auspicious dates to addressing issues like marriage or job loss. Despite the dispersion, Astrotalk generates most of its revenue from customers in their twenties.
This demographic, navigating the uncertainties of early adulthood, particularly around career and marriage, finds solace in astrology. With limited access to formal professional and marriage counselling in India, astrology offers Gen Z and Millennials a framework to confront life’s core challenges, providing a sense of direction and purpose. Their high engagement with social media makes digital astrology solutions accessible and appealing. Astrotalk has tapped into this behaviour by offering a free first session and subsequent consultations at an affordable INR 17-20 per minute, ensuring continued engagement and growth.
Serving the young generation with Real-World Solutions
While astrology may offer comforting reassurances, addressing real-life challenges through tangible means is crucial. Today’s youth need to understand that obstacles are a natural part of life, shaping resilience and growth. However, the culture of instant gratification—fuelled by apps like Swiggy and Blinkit—has fostered unrealistic expectations. When these expectations aren’t met, it often leads to distress and mental health issues for many in this generation.
Social media amplifies insecurities as Gen Z and Millennials compare their lives to the curated highlights of their peers, deepening the fear of missing out. To counter these pressures, there is an urgent need for formal programs that provide personalised guidance in critical areas like employment and marriage. While mass placement drives exist, what’s missing is bespoke, one-on-one support that helps individuals progress from where they are to where they want to be. Establishing such tailored services could bridge the gap between instant fixes and lasting, meaningful progress.
Making mental health support system Bite-sized
Several online platforms are working to address the mental health needs of young adults in India, such as YourDost, Amaha (Inner Hour), Wysa, Practo, 1to1 Help, HopeQure, and ePsyclinic. These platforms offer a range of services, from free access to self-help resources to one-on-one therapy sessions, often at varying price points. Despite these options, bite-sized and easily accessible mental health solutions remain scarce, particularly online. As a result, many young adults turn to astrology apps, drawn by their convenience. This trend suggests that the reluctance to engage with formal programs may stem not from a lack of awareness but from the inconvenience associated with existing professional services.
Strategies for Improvement
To better meet the needs of young adults, several strategies could be implemented:
- Bite-sized Content on social media: Sponsored by reputable organizations and mental health apps, these platforms could feature professional practitioners offering concise guidance on life’s challenges. This approach would make expert advice more accessible through short, curated content.
- Modular Tele Services: Changing existing tele platforms to be more user-friendly and modular would make professional services more attainable. Simplifying the process through shorter sessions and per-minute charges could significantly reduce barriers to entry.
- Customized Support Programs: Developing comprehensive guidance systems that integrate professional therapy, community support, educational resources, and self-help tools could provide more rounded and sustainable solutions. These programs would offer tailored support, addressing individual needs while fostering long-term resilience.
By addressing these unmet needs, we can create a comprehensive digital support system that is both inclusive and impactful. Young adults deserve the opportunity to tackle their challenges with continuous, sustained guidance that empowers them to resolve issues at their core. Such a support system should not be a privilege but a fundamental right accessible to all who seek it.
Shreyus Gopalakrishnan
Shreyus Gopalakrishnan is a Management Consultant with 4+ years of experience in Business plan formulation, Go to Market strategy, Market entry and Digital Transformation across sectors such as Agribusiness, Manufacturing and IT. His experience prior to Avalon includes working with the strategy department of an Agribusiness startup on areas such as carbon credits and market place platforms for farmers. Personally, he loves travelling to new geographies and exploring new cultures.
Sakshi Bodhade
Sakshi Bodhade is a Management Consultant at Avalon Consulting with extensive experience in diverse projects such as Cost Optimization, Market Assessment and Entry, Due Diligence, Product Cataloguing and Diversification across various sectors including Steel Manufacturing, Specialty Chemicals, Textiles,Automotive, and Engineering. She has demonstrated flexibility and adaptability in client-facing roles under challenging conditions. Sakshi holds an MBA from the Indian Institute of Management Tiruchirappalli and a bachelor's degree in Electronics and Telecommunication Engineering from Vishwakarma Institute of Technology, Pune. She also has over two years of experience in FinTech, providing her with a solid foundation in both technical and business domains. In her leisure time, she enjoys reading and writing poetry and is an enthusiastic traveller.
