Astrotalk appoints chief financial officer ahead of IPO plan

Astrotalk has appointed Deepak Khetan as its chief financial officer as it plans for a public listing within two years.

Astrotalk is an India-based astrology consulting platform with over 20,000 astrologers and 700,000 daily active users.

Khetan previously held CFO roles at GLS Group India, GlobalBees, and Edelweiss Financial Services.

He will oversee financial strategy, risk management, and regulatory processes at Astrotalk, with an emphasis on IPO readiness.

Astrotalk raised US$14 million in June 2024 and has secured US$34 million in funding from Left Lane and Elev8 Capital.

According to an internal document reviewed by Entrackr, the company reported revenue of 1,182 crore rupee (US$142 million) and profits above 250 crore rupee (US$30 million) for FY25, up from 651 crore rupee (US$78 million) in revenue and 100 crore rupee (US$12 million) in profit in FY24.

🔗 Source: Entrackr

🧠 Food for thought

1️⃣ Revenue-sharing models enable rapid scaling with lower upfront costs

Astrotalk’s approach of partnering with over 20,000 astrologers through revenue sharing demonstrates how this model can achieve massive scale without traditional hiring costs.

Revenue-sharing arrangements allow businesses to distribute financial risk while aligning partner incentives with company growth, as both parties benefit when the platform succeeds1.

This model has proven effective across various industries, such as music streaming and affiliate marketing, because it attracts talent through performance-based compensation rather than fixed salaries2.

For Astrotalk, this structure likely enabled them to build their extensive network of service providers while maintaining the flexibility to scale operations up or down based on demand.

The model also helps explain their profitability trajectory, jumping from Rs 100 crore to Rs 250+ crore in profit between FY24 and FY25, since revenue sharing naturally controls labor costs as a percentage of revenue.

2️⃣ IPO timing aligns with improving market conditions for profitable tech companies

Astrotalk’s two-year IPO timeline positions them to benefit from the anticipated tech sector recovery, as nearly 100 companies have already begun the IPO process with the SEC3.