Mumbai, October 16: Astrotalk, the rapidly growing astrology tech startup, has seen its high-profile funding negotiations with India-focused hedge fund Hornbill Capital hit a snag. The proposed investment, reportedly in the range of USD 100-120 million, would have valued the eight-year-old company at USD 1-1.2 billion, more than tripling its 2024 valuation of USD 300 million. The deal, which had reached advanced stages, hit a wall after NSFW (Not Safe for Work) content was found on Astrotalk’s app and platform, reported Money Control.

Hornbill Capital, known for backing high-potential India-focused startups, was expected to help Astrotalk expand its operations and strengthen its position in the booming astrology tech market. The discussions had reached advanced stages, suggesting mutual interest, but tensions over specific aspects of the platform reportedly emerged. Despite the promising prospects, the deal has now stalled. So, why did the deal fall through? Let’s find out. Astrotalk Raises USD 20 Million for Strategic Acquisitions To Expand International Markets.

 Why Did Astrotalk-Hornbill Capital Deal Collapse?

The Astrotalk-Hornbill Capital deal reportedly collapsed due to a combination of concerns over content on the Astrotalk platform and a mismatch in valuations, as reported by Moneycontrol. During Hornbill’s due diligence, the hedge fund discovered NSFW content, including videos and chats, on the app and platform. Such content raised risk concerns for the investors, who were wary of exposure to a grey area that could affect the fund’s reputation and regulatory compliance. India’s Steady Export Growth in H1 FY26 Reflects Strong Resilience, Global Competitiveness, Says FIEO.

In addition to content-related concerns, sources close to Astrotalk told Moneycontrol that the two parties could not agree on the company’s valuation. Astrotalk was seeking a higher valuation or less equity dilution, while Hornbill was unwilling to meet those terms. Although some Hornbill executives might still invest in Astrotalk personally, the formal USD 100-120 million funding deal is no longer moving forward, leaving the startup to explore alternative arrangements for its next round.

Despite the deal falling through, Astrotalk continues to show strong growth, having ended FY25 with revenues of INR 1,200 crore and profits of INR 250 crore. The platform, which connects users with verified astrologers, is also exploring new revenue streams, including offline stores and additional services. Future funding rounds are expected to include secondary share sales, allowing founders Puneet Gupta and Anmol Jain to dilute stakes without affecting operations.

TruLY Score by LatestLY
Rating:3

TruLY Score 3 – Believable; Needs Further Research | On a Trust Scale of 0-5 this article has scored 3 on LatestLY, this article appears believable but may need additional verification. It is based on reporting from news websites or verified journalists (Money Control), but lacks supporting official confirmation. Readers are advised to treat the information as credible but continue to follow up for updates or confirmations

(The above story first appeared on LatestLY on Oct 16, 2025 08:46 AM IST. For more news and updates on politics, world, sports, entertainment and lifestyle, log on to our website latestly.com).