The cosmic churn was giving birth to a variety of fascinating and one-of-a-kind formations, and this variety of things kept Daityas and Danavas going. The ocean was full of white floating froth due to the constant swirls. And then, a fountain of water roused their curiosity again, but this was something no one expected.

Not knowing what to do, the Gods decided to send her to dwell among unruly and punishable people to give them penury and agony. As a result, she became known as the Goddess of Misfortune and Bad Luck.

The Padma Purana mentions Alakshmi as the personification of Durbhagya (bad luck). Alakshmi was the polar opposite of her younger sister, Lakshmi, who was the goddess of auspiciousness. According to Chakrabarty, when Alakshmi enters a house, jealousy, separation, destruction, and poverty follow her.

According to another legend, Lakshmi was born from Brahma’s radiant face; however, Alakshmi was created from the darkness of his back. Being the elder, she was known by the name of Jyestha (elder).

Even though she is not mentioned in any other texts or Vedas except in the Padma Purana, her characteristics match those of goddess Nirti in the Rig Veda to a large extent. So she can also be called an incarnation of Nirti.

Several beliefs mention the coexistence of both Lakshmi and Alakshmi. Some say that her presence with Lakshmi is invisible, while others say that she stays with Lakshmi in the guise of an owl. However, certain beliefs claim that Lakshmi and Alakshmi never coexist due to their opposite facets.