Astrotalk-Hornbill Capital Deal Collapses: Astrology Tech Startup's Proposed USD 120 Million Funding Hits a Wall After NSFW Content Found on Its App and Platform, Says Report

 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.