Astrotalk achieved unicorn status this week, becoming India’s 133rd unicorn with a $1 billion valuation through an employee stock ownership plan (ESOP) buyback, without raising new funds or adding investors. The company internally arrived at this valuation while preparing for an initial public offering (IPO), marking a rare event in the Indian startup ecosystem, according to inc42.com.
The ESOP buyback involved Astrotalk purchasing shares from its employees at a valuation exceeding $1 billion, creating wealth for those employees. Founder and CEO Puneet Gupta told inc42.com that the startup does not currently need to raise capital before the IPO. Gupta added that the company might consider a funding round only if reputable investors seek to join the cap table ahead of the IPO roadshow, with the primary goal being investor names rather than capital infusion.
This approach highlights Astrotalk’s strong position in funding its own growth, a contrast to many startups that rely heavily on external capital. The company was reported in 2025 to be in talks for a $50 million funding round at a unicorn valuation, but no such round has been announced since. The move to reach a $1 billion valuation internally through an ESOP buyback is unusual in India’s startup landscape, especially as public markets have been challenging for startup valuations recently.
Astrotalk’s next major milestone is its planned IPO, which will test whether the $1 billion valuation holds in public markets. The company’s decision to avoid pre-IPO fundraising unless strategic investors join the cap table underscores its confidence in its business model and growth trajectory, as reported by inc42.com.