New Unicorn Startup in India: Astrotalk Achieves $1-Billion Valuation After ESOP Buyback

Noida-based astrology and spiritual-tech platform Astrotalk has entered India’s unicorn club after completing an employee stock option (ESOP) buyback that valued the company at $1 billion (around Rs 9,500 crore).

The buyback involved more than 100 employees and was funded from profits generated by the company’s operations rather than fresh capital from investors. Astrotalk has not disclosed the total value of the ESOP liquidity programme.

The latest transaction marks a sharp increase in Astrotalk’s valuation from its last funding round. The company was valued at around Rs 2,400 crore in June 2024, according to reports, meaning its valuation has risen several times in about two years.

“Over the years, Astrotalk has focused on building a profitable

and sustainable business. The fact that we are able to undertake this ESOP buyback using the profits generated by the company makes this milestone especially rewarding,” co-founder and CEO Puneet Gupta said.

The unicorn milestone is notable because Astrotalk did not raise fresh external funding to arrive at the latest valuation. Instead, the company used profits from its business to provide liquidity to employees holding vested stock options.

Astrotalk co-founder and CEO Puneet Gupta said the ability to fund the buyback through profits reflects the company’s focus on building a profitable and sustainable business.

The company, founded in 2017, initially built its business around online astrology services, connecting users with astrologers through its digital platform. It has since expanded into adjacent spiritual and commerce-related categories.

Its focus on profitability sets it apart from several startups that have historically relied on repeated external funding to finance rapid expansion.

Who Has Invested In Astrotalk?

Astrotalk has raised funding from investors including Left Lane Capital and Elev8 Venture Partners. Left Lane Capital invested $20 million in Astrotalk in February 2024 and followed it with another $14 million investment in June 2024.

The company is now looking to expand its global presence while investing in technology and talent, as it seeks to strengthen its position in the broader spiritual-tech market.

What The ESOP Buyback Means For Employees

The ESOP buyback gives more than 100 employees an opportunity to sell part of their vested shares and realise some of the value created by the company’s growth.

Astrotalk co-founder Anmol Jain said the initiative is aimed at rewarding employees for their contribution and strengthening an ownership culture within the company.

The $1 billion valuation also gives employees a reference point for the value of their holdings, although the eventual proceeds from any individual employee’s sale would depend on the number and type of shares or options held.

With the latest transaction, Astrotalk becomes one of India’s newer unicorns, having reached the milestone through business growth and an internally funded employee liquidity event rather than a conventional funding round.