Sri Mandir keeps investors hooked as digital devotion grows

AppsForBharat, the innovative Indian startup behind the Sri Mandir app, has successfully raised $20 million in its latest funding round, just nine months after securing $18 million. This surge in investment highlights the app's growing appeal among both devotees and investors alike. Leading the Series C funding round is Susquehanna Asia Venture Capital, with participation from notable existing investors such as tech mogul Nandan Nilekani's Fundamentum Partnership, Elevation Capital, and Peak XV Partners. In India, where spiritual practices are deeply rooted, the Hindu temple economy is a significant contributor to the nation's GDP, valued at approximately ₹3.02 trillion (around $40 billion). Despite the sheer scale, many devotional services remain offline and unstructured. Sri Mandir aims to bridge this gap by providing a platform for online prayers and virtual offerings to temples, launched shortly after the company's inception in November 2020. With over 40 million downloads since its debut, the app has facilitated online prayers for 1.2 million devotees at more than 70 temples across the country over the past year. Currently, Sri Mandir boasts around 3.5 million monthly active users, with about 90,000 hailing from outside India. While its primary user base is domestic, international users contribute significantly higher revenue, averaging around ₹7,000 ($81) compared to ₹600–800 ($7–$9) in India. Interestingly, nearly 20% of the app's revenue comes from the Indian diaspora in countries like the U.S., U.K., UAE, Canada, Australia, and New Zealand. The number of registered users abroad is growing at a rate of 15% each quarter, reaching 700,000. The app's user demographics reveal that its Indian audience is equally divided between tier-1 and tier-2 cities, with 30% of users under the age of 35. Conversely, international users are primarily aged 30 and above. As of early 2025, Sri Mandir achieved an impressive $12 million run rate, with a six-month retention rate of approximately 55%. According to AppsForBharat's founder and CEO, Prashant Sachan, the app's retention is a direct result of users regularly engaging in such transactions throughout the year. User engagement varies by location. In India, 20% to 25% of users engage in both prayers and offerings via the app, while in the United States, this figure rises to about 50%. Although traditional Hindu devotional services have been largely offline, some temples are beginning to adapt by live streaming services and accepting online offerings. Sachan noted that rival apps account for only 15% to 20% of Sri Mandir's total installations, underscoring its strong market position. Sri Mandir generates revenue by taking a percentage of offerings, typically ranging from 20% to 25%, depending on the services provided. The startup is also expanding its offerings to include temple merchandise, aiming to boost revenues beyond prayer-related transactions. Importantly, the app has been instrumental in increasing temple revenues by 15% to 25% through the attraction of online devotees. Globally, the religious app market has seen substantial growth, with the top ten apps experiencing a 15% year-over-year rise in monthly active users. India's religious app sector has outpaced this trend, with the leading apps reporting a 60% increase in active users. Despite this growth, Sri Mandir slipped from its previous top ranking among religious apps in India, now sitting in second place behind LifeChurch.tv's Bible app. As religious tech funding in India reached a record high of $50.5 million in 2024, AppsForBharat has emerged as a key player, having raised $33.4 million prior to its Series C. The company plans to utilize its new funding to invest in over 20 temple towns, starting with significant cultural hubs such as Varanasi and Ayodhya. By establishing physical facilities in these areas, the startup aims to streamline logistics for food offerings and other ritual items, creating local employment opportunities. Moreover, AppsForBharat is enhancing the app's user experience with AI-driven features that will assist users with questions about faith, prayers, and festivals. The company is committed to working with experts to ensure the accuracy of information, avoiding the pitfalls of AI misinformation. As they aim for profitability by 2027–28, AppsForBharat is also considering a public listing, with plans to expand their temple partnerships and increase their workforce from 300 to approximately 400 employees.