wordpress blog stats
Connect with us

Hi, what are you looking for?

Astrolife.com Bought From People Group By Business Head Raj Rao

logo-astrolifeMediaNama had learned from reliable sources that Raj Rao, the business head of Astrolife.com has led a management buyout of the portal from the People Group (Shaadi). Astrolife is a website focused on Astrology, and offers both free and paid Astrology related services.

Raj Rao confirmed the development to MediaNama, saying that he had started the astrology business in People Interactive, being an astrologer himself, and as of May 1st 2009, had assumed management control of the company. According to Rao, it was a strategic decision: People Interactive were looking for a way to ensure that each business gets attention from the management, and it made sense for this relatively smaller business to be separated. People Interactive retains a minority stake in the new company – called Astrology India Pvt Ltd, but is yet to nominate a member to the board. Sequoia Capital does not own any direct stake in Astrolife, though it owns stake in People Interactive.

Cutting Costs, Raising Money

Rao says that he has since focused on reducing costs to make it more profitable – Astrolife couldn’t take the costs of a large corporate, and he is now in startup mode. He’s moved office from “Town” (South Bombay) and reduced real estate costs, taken a pay cut and reduced people costs. No external funding has been raised for the buyout, though Rao says he may look to raise money at the end of the next quarter, after he stabilizes the business. “But after cutting costs, maintenance is not a concern anymore,” he adds.

Revenues, Tie-Up With Astrology.com

Rao declined to comment on specific revenue figures for Astrolife, saying only that the company has been doing much better since October – particularly from January onwards. According to him, people are turning to Astrology for guidance during the downturn, and there has been a surge of requests for career guidance. They’ve also tied up with Astrology.com (a part of the iVillage Inc, owned by NBC Universal) for syndicating astrology content. Rao declined to share a split between Subscription, Syndication and Advertising revenues, saying that they’re more focused on subscription, and advertising revenues are too small to talk about.

You May Also Like

News

Telecom infrastructure company Bharti Infratel has decided to proceed with its imminent, but long delayed, merger with Indus Towers, the company said in a...

News

GPX, the data centre company with infrastructure in India that connects clients in India to Google and Amazon’s cloud services, has sold its India...

News

The digital business of Raghav Bahl and Ritu Kapur’s The Quint have been acquired by Gaurav Mercantiles Limited, a company that also has Kapur...

News

Indian food aggregator Zomato has acquired Uber’s food delivery business in India in an all-stock transaction that would give Uber a 9.99% ownership in...

MediaNama is the premier source of information and analysis on Technology Policy in India. More about MediaNama, and contact information, here.

© 2008-2018 Mixed Bag Media Pvt. Ltd. Developed By PixelVJ

Subscribe to Daily Newsletter

    © 2008-2018 Mixed Bag Media Pvt. Ltd. Developed By PixelVJ