2023: Year of the Rise in Faith-Tech Apps

Faith-tech apps or mobile applications catering to faith-based practises like astrology, tarot card readings and more has witnessed a growth spurt in 2023, thanks to significant consumer demand.

Talking to Republic Business, Sri Mandir founder Prashant Sachan said, “Over the last one decade, consumer behaviour in India has significantly moved online which includes daily habits like reading and spending mostly through digital wallets. Devotion and faith-based activities too are moving online via mobile apps.”

Sachan has worked with the likes of IBM, Microsoft and Samsung, and exited his social commerce startup Trell in 2020 before starting Sri Mandir in 2021, inspired by his household in Kanpur.

Another company in this category, Astrotalk, is backed by CRED founder Kunal Shah and is now eyeing the IPO route for FY25.

Co-founder and Chief Business Officer of Astrotalk Anmol Jain told Republic Business, “I think we should be (filing for) IPO when we are at a revenue ranging from Rs 1,500 to Rs 2,000 crores, which should be happening somewhere in FY’25. So, we see ourselves filing the papers in FY’25 and eventual listing would be in the 2025-26. financial year.”

Jain also chalked out fundraising plans of close to $25 million (about Rs 208 crores) before the public listing. The company has monthly active users on the platform at 4 million currently. 

“We acquire around 2-2.5 lakh active users every month. Our daily active users are around 4,00,000," Jain added. 

Astrotalk enlists celebrity ambassadors like Archana Puran Singh, Sunny Leone and Mandira Bedi, and has about 13,000 consultants and thousands of users.
As per data platform Tracxn, Astrotalk is a soonicorn and the number one astrology app with a funding of $8,11,000. The New Delhi-based app has risen a seed round as of August 2021 and has a valuation of $81.2M with annual revenue of $15.6M as on Mar 31, 2022.

Other top players, as per Tracxn, include New York-based Kasamba with a funding of $2 million, Ahmedabad-based GaneshaSpeaks with a funding of $ 56,500 and Noida-based Bodhi which has raised $ 535,000 so far.  

Another faith-tech company VAMA.app recently raised a seed round of $ 1.5 million (about Rs 12.4 crores) from Wavemaker Partners.

Co-Founder of VAMA.app Manu Jain told Republic Business, “In the thriving faith-tech sector, VAMA.app stands out as a leading player with substantial growth, boasting an annual revenue run close to over $2 million. The astro-tech sector, driven by digital adoption and a cultural shift towards well-being, has also attracted investors' interest. Despite industry-wide funding challenges, we have navigated this terrain effectively, securing early support from believers who share our vision.”

The company has raised closed to $3 million (about Rs 25 crore) by investors in the likes of Lisa Gokongwei-Cheng, Harit Nagpal, and several micro-VC investors, such as Blume Founders Fund, Alluvium, Untitled VC, and notable angels like Burak Buyukdemir and Dhruv Bahl.
Phuong Tran, Investment Principal at Wavemaker Partners said in a statement during the funding announcement that it bets on the company's founders and the company.

“The founders’ complementary skills, steadfast dedication, and strategic vision have enabled VAMA to create something exceptional out of its humble beginnings. By combining astrology and digital temple access in an easily accessible platform, VAMA's ingenious approach has paved the way for an extraordinary venture that helps users address their spiritual needs. VAMA's incredible journey speaks volumes about its resilience, innovation, and unwavering commitment to excellence within the faith-tech sector,” the statement read.

Notably, Wavemaker’s investment amounting to $1.1 million marks one of its first in an India-incorporated tech company.

Partner at Elevation Capital and early-stage venture investor Mayank Khanduja said, "Faith and spirituality cut across demographics in India with spend pools as large as ~$30-40Bn annually in areas like temple offerings, rituals, astrology services. While it has been entirely offline in the past, we observed that faith related content had become a top 10 category on mainstream platforms like YouTube, Facebook and Sharechat. This to us was a clear sign that users were open to moving their behaviour online and thus we were very keen to invest in this space.”