Biz of belief: How India’s astrology apps are turning faith into fortune amid rising regulatory concerns

"I have spent thousands of dollars on online astrology and psychic portals, expecting guidance. However, most readings felt generic and computer-generated. They overlooked my birth chart details," a person requesting anonymity told Storyboard18.

Another user shared a similar experience, stating that psychic advisors often provided ambiguous forecasts without offering any concrete advice.

However, not all users were dissatisfied. Some regular users of astrology apps, such as Astrotalk, AstroSage, and Pandit Ji, said their experiences varied depending on the expert.

"There are numerous experts sitting on the other side of the screen, giving all kinds of predictions. The experience really differs from person to person. Some connect deeply with certain astrologers, while others don't. It's a gamble I still find tempting, because sometimes I do receive genuinely good guidance," a user said.

With the growing interest in astrology, several companies are tapping into this niche market in India. Platforms such as Astrotalk and AstroSage have each recorded more than 5 crore downloads on the Google Play Store.

According to the data from the market intelligence platform Tracxn, Astrotalk reported a 132% year-on-year rise in revenue in FY24 to Rs 659 crore, along with a profit of Rs 100 crore.

In contrast, AstroSage saw a 59.5% YoY increase in revenue to Rs 60 crore in FY24, but its profit dropped by half to Rs 50 lakh.

Gurugram-based Astroyogi reported Rs 85.3 crore in revenue in FY24, while InstaAstro and GaneshaSpeaks earned Rs 21.1 crore and Rs 13.7 crore, respectively.

Astrotalk claims that several companies, including WeWork, PhysicsWallah, Zypp and Farmley, have partnered with it to help employees find "constructive" ways to handle personal and professional challenges.

"Our sessions aren’t like the usual corporate activities. For those few minutes, it’s not about work or performance. It’s about them. Employees talk about real issues--career, relationships, and family. Our astrologers help bring clarity and calmness," said Nandan Sharma, Senior Vice President, Operations, Astrotalk.

Pawneet Kaur, Head HR-People & Culture at Zypp, said astrology sessions were among the most well-received employee engagement initiatives at the company.

"The session not only created a fun and interactive environment but also encouraged self-reflection and positive energy across the workplace," Kaur said.

'Advertising of astrology'

AI-driven astrology applications have emerged as some of the biggest spenders on advertising and promotional campaigns in a bid to attract new users to their platforms.

Social media feeds are often flooded with ads carrying provocative hooks such as, "Why shouldn't you for a job right now?", "Will you marry the person you like?", or,"Expect good news in the next seven days if you subscribe to us".

Such sensational claims have become a staple strategy of these astrology apps vying for user attention online.

One internet user told Storyboard, "I do believe in astrology, but I swear astrology can't tell you when your ex will come back or the exact date you'll get married. They ae seriously ruining people's perception of astrology by putting out such ads".

According to Tracxn, Astrotalk spent Rs 162.7 crore on advertising and promotional activities in FY2024.

Manisha Kapoor, CEO and Secretary General of the Advertising Standards Council of India (ASCI), told Storyboard18 that advertisers of such services must avoid making absolute claims such as "100% guarantee".

"If claims are made about past performance, the app must provide data to substantiate them. Otherwise, such advertising will be deemed misleading. Disclaimers must also be clear and visible so consumers can make an informed choice," Kapoor said.

Notably, astrology as a practice faces no legal restrictions in India--in fact, it's even offered as a formal course in several universities.

'Legal implications'

At present, there is no dedicated legislation regulating digital astrology or fortune-telling services in India. However, they are indirectly governed by laws such as the Information Technology Act, 2000, the Consumer Protection Act, 2019, and the recently enacted Digital Personal Data Protection Act, 2023 (DPDP Act).

Sonam Chandwani, Managing Partner KS Legal & Associates, explained that these laws apply depending on the type of data collected, the representations made to users, and the commercial practices followed by astrology apps.

"While belief in astrology is not illegal, monetising it through deceptive or unsubstantiated claims can expose app developers to scrutiny under consumer and data protection laws," said Chandwani.

For instance, astrology apps that collect sensitive personal data-- such as birth details, gender, and religious affiliation-- qualify as data fiduciaries and are required to obtain informed consent, specify the purpose of use, and maintain adequate data security under the DPDP Act.

From a consumer protection standpoint, while astrology is often framed as belief-based or entertainment services, apps that make definitive promises, such as guaranteeing marriage, employment, or financial prosperity, may face liability under Section 2(47) of the Consumer Protection Act, which defines misleading advertisements.

The Central Consumer Protection Authority (CCPA) can impose penalties of up to Rs 10 lakhs for the first offence, and up to Rs 50 lakhs for repeated violations. It can also prohibit the endorser or advertiser from promoting such claims, said Chindwani.

The astrology apps may have found their lucky stars, but the challenge will be to balance user trust with transparency in an increasingly data-driven world.