AstroTalk becomes unicorn at $1 Bn via ESOP buyback

AstroTalk has joined the unicorn club with a $1 Bn valuation, but it achieved the milestone without raising fresh funds. Inc42 reports that the valuation came from an ESOP buyback, where the company bought shares back from employees, creating wealth for them. Founder and CEO Puneet Gupta told Inc42 that the startup does not need to raise capital before its planned IPO, and would only consider a round if reputed investors wanted to join the cap table for credibility rather than money.

The startup's operating revenue quadrupled from Rs 283 crore in FY23 to Rs 1,176 crore in FY25. However, profit after tax fell to about Rs 33 crore in FY25 from Rs 85.5 crore in FY24 as expenses rose. AstroTalk attributed the dip to exceptional employee costs linked to the buyback. International markets, entered in late 2024, contributed 37% of revenue in FY26, with the US alone accounting for 60% of that. The company's fastest-growing vertical is its store business, launched in November 2024, which already runs at an annual revenue run rate of over Rs 200 crore.

As AstroTalk prepares for a public listing, the valuation has not been defended by any external investor. The company has not disclosed the exact size of the exceptional expenses or the IPO timeline. The details will become clear when it files its draft red herring prospectus.