Do you ever stop to marvel at the innovation around you? In the last couple of years, especially post the COVID-19 pandemic, it seems like e-commerce, FoodTech and FinTech are some of the sectors that have really taken off in India. Of course, once the 2021 fundraising exuberance era was done, there seemed to be a period of sobering and a bit of a funding winter.
And yet, in 2024, a new sector seems to be getting a lot of love and it’s probably not one that you may have been expecting. Similar to how entrepreneurs need to have faith in the startup they’re building in order to keep navigating turbulent waters, it seems like investors are placing their faith in FaithTech. And it’s not like it’s smaller funds are devoting resources to FaithTech, it’s some pretty known names, like Peak XV, Matrix Partners and Blume Ventures.
So, how much love is FaithTech getting? One report outlines that FaithTech saw a rise in funding from close to $4.5 million in 2023 to close to $51 million in 2024. A recent example of funding was in late September 2024, when AppsForBharat, which is said to be the parent company of Sri Mandir, raised about $18 million in a funding round led by Fundamentum.
Talking about India’s unorganized religious and spiritual market was valued at about $60 billion in 2023 with a projected CAGR of close to 9% from 2024 to 2032, according to another report, so opportunities are abound.
Some might like seeing a personalized horoscope or astrological chart or astrological consultations. Or from the comfort of one’s phone, one could take part in a religious prayer ritual, but that might have begun during the pandemic itself. It seems like ventures, like AstroTalk, Phool and AppsForBharat might be killing it right now to take the traditional and mix it up in a cocktail shaker with the power of 21st century technology.
Of course, the market might be very interesting with not much downside in terms of need. As Paresh Rawal outlined in OMG, when things are going well, people pray and engage in religious services and when things are going worse, people double down on the praying and the engaging in religious services. Maybe, visiting pilgrimage sites might have cost and logistical barriers, so doing it through your phone is oh-so-accessible and easy. Why leave your couch when you want great things to happen to you?
It’s said that FaithTech might have great margins in India, with growing demand and a lot of folks willing to pay a premium if it means there would be good fortunes down the road. Festivities across the year might indicate user stickiness and spikes in activity, so there seem to be high customer retention rates. Interestingly, it’s said that it’s not older folks engaging with FaithTech as much as the young are, with a lot of FaithTech users in the age bracket of 25-40, who are trying to figure out what to do marriage- and career-wise. And international consumers might be paying double what a domestic consumer is. Lord have mercy.
On top of that, FaithTech might be asset-light, compared to some other sectors, because the value creation of such a startup might be intangible and not as much physical infrastructure would be needed. So, if a FaithTech startup’s primary assets are digital, scaling across India and abroad could be a bit easier. And keeping in mind how a church in Switzerland introduced an AI Jesus for worshippers to communicate with, would a FaithTech startup in India emulate that to attempt to bring people closer to their God?
If India’s tech narrative is being dominated by FinTech or FoodTech or e-commerce, a sector steeped in culture and doctrine being part of the discourse might be very interesting. Maybe, no matter how hard a FoodTech or FinTech or e-commerce platform tries to hyper-personalize with push notifications, it might not connect the way a FaithTech startup would with emotionally invested consumers. Other sectors might take time to foster trust with consumers, but it might be a bit easier for FaithTech startups. Furthermore, the success of FaithTech might also be an impetus to other traditional sectors in India, that are a bit more culturally anchored, to be on the radar of mainstream investors. Plus, the AI boom can always be leveraged.
Is India soon going to have its first FaithTech unicorn in 2025? If so, that’s the spirit.
Is 2024 The Year Investors Take A Leap Of Faith On FaithTech?
