Subscription Revenue Streams

Subscription commerce failed in India for a decade. Now it's working. Why? I remember 2016. Every other pitch deck had "subscription box" on it. Fab Bag, beauty boxes, meal kits - everyone wanted to build India’s Dollar Shave Club. By 2020, most were gone. My Ayurveda brand tried too, even with 6–9 month purchase cycles, it didn’t work. Cut to today, a very different picture.I recently spoke to 3 founders running subscription businesses. All launched post-2022. All profitable. One doing ₹50-1000 Cr+ ARR with 65% retention at month 6. That got my attention. So I spent the last few days digging into why it's suddenly working. Why did FAB BAG, Doctalk, Doodhwala, Otipy fail but today's winners are killing it? The answer came down to two words: UPI AutoPay. The successes: → Kuku FM: >12 M+ paying subscribers for regional audio-video content (our first investment at @V3 Ventures India) → Country Delight: Daily milk delivery via subscription, does ₹600+ Cr in revenue → Wholsum Foods (Slurrp Farm and Mille): Kids nutrition products on weekly/bi-weekly subscription. Parents don't want surprises, they want the same healthy millet cookies delivered automatically. Aisha is a big customer → Licious: Meat subscription component growing fast. You pick your cuts, they deliver weekly What changed? 1. UPI solved the payment problem: 131 billion UPI transactions in 2023. Auto-debit on UPI is now seamless. It had a lot of friction in the past. This has led to what one founder told me: "COD customers churn at 40%. UPI auto-debit customers churn at 12%. Payment method is the business model." 2. Q-Com also proved daily delivery is possible: When Zepto can deliver groceries in 10 minutes, milk every morning doesn’t sound crazy anymore. Cold chain, reliability, last-mile ops - all the boring things finally clicked. 3. Model Shift: Replenishment > Discovery, Subscription in India isn't about trying new things. It's about auto-delivering stuff you already buy by removing friction & making customers loyal. Indians now buy the same atta, same milk brand, same baby food every week. Subscriptions just automate what we'd do anyway - with a small discount as incentive. So, what works is obvious now Category: Consumables (milk, eggs, baby food, meat)  Frequency: Weekly/bi-weekly (monthly too long)  Discount: 5-15% ( like Country Delight’s early-bird plans)  Flexibility: Easy skip/cancel (trust builder)  Payment: UPI auto-debit (not COD) After a decade of failed experiments, subscription commerce has finally found its moment in India and it looks nothing like the US playbook. The brands that understand this will build annuity businesses in categories everyone else is fighting for one transaction at a time. The question: there’s been talk of consumers forgetting their upi auto pay subscriptions. Will this be regulated/some friction be added?

Want to know how to build a real subscription business? Don't start with subscriptions. Seriously, this is one of the toughest lessons we've had to learn. Here's our detailed 5-point framework for building sustainable retention revenue: 1. Prove unit economics first Some brands rush to subscriptions to 'fix' bad unit economics. That's backward. What we focus on: - Target 1.5X ROAS minimum on first purchase - Test different offer structures (30-50% off based on margins) - Validate bundle economics before subscription plays - Build cash reserves for proper testing Why? You need runway to test retention strategies properly. 2. Wait for reviews to validate Your early customers tell you everything about retention potential. What to watch: - Post-purchase survey responses - Time between discovery and purchase - Common objections and concerns - Natural reorder patterns Key finding: Almost half our customers know us for a month+ before buying. Use this data. 3. Launch new products strategically The goal is to get 2-3 purchases in the first 4 weeks. Our approach: - Launch best/premium variants first - Time releases to maintain purchase momentum - Create urgency with limited availability - Use each launch to reactivate existing customers Real example: Our Black Friday strategy wasn't about one big discount. It was about driving multiple purchases through strategic launches. 4. Calculate product-specific LTV Different products have different retention patterns. Track everything: - Reorder windows - Flavor preferences - Cross-category purchase behavior - Channel-specific retention rates Don't assume all products deserve a subscription model. 5. Model subscription scenarios only after you have: - Proven reorder patterns - Clear flavor preferences - Strong retention signals - Cash flow for proper testing The results? We grew from 100% to 400% year over year by mastering steps 1-5 before pushing subscriptions. The reality is subscription revenue is earned, not forced. Focus on making a product people want to reorder before optimizing how they reorder. Your subscription model is only as good as your retention data.

Tired of the rollercoaster of income highs and lows? Let’s fix that. Here’s the truth: Feast-or-famine cycles aren’t just stressful—they’re unsustainable. If you’re relying solely on one-off projects or sporadic sales, you’re playing defense. The key to stability? Recurring revenue. 👉 Retainer services that keep clients coming back. 👉 Memberships that create a community and steady cash flow. 👉 Subscription-based products that deliver value month after month. These aren’t just income streams—they’re the foundation for growth. Businesses with recurring revenue models grow 5-7x faster than those without (source: McKinsey). With predictable income, you can focus less on hustling for the next deal and more on scaling what works. Actionable Advice: 👉 Brainstorm ONE way to add recurring revenue to your business. • Could you offer a monthly coaching package? • Create a subscription product? • Build a retainer model for your services? • Write down your idea and outline your first steps today. Ready to create consistent, predictable income? Download the Strategic Offer Builder and design offers that stabilize your cash flow and set you up for success. ➡️ https://lnkd.in/ewYNzEtq Predictable income isn’t a dream—it’s a decision. Let’s make it happen.

Our most underestimated pricing strategy? Subscription models. It’s tempting to think pricing is just about one-time sales, but subscription models are rewriting the rules. They’re more than a trend—they’re a strategy for sustained growth and loyalty. Here’s why subscription models matter: → Predictable Revenue Steady, recurring income helps businesses plan better and weather market fluctuations. → Stronger Customer Bonds Subscriptions aren’t just transactions—they build relationships. Convenience, value, and personalization create loyalty. → Tiered Flexibility Different customers, different needs. Tiered plans let businesses cater to everyone—from budget-conscious shoppers to premium buyers. What about dynamic pricing? It’s another game-changer. Static pricing is out. Real-time adjustments are in. → Real-Time Adjustments Dynamic pricing powered by AI reacts to market shifts, competitor moves, and customer demand instantly. → Data-Powered Decisions AI sifts through trends, behaviors, and sales data to find optimal price points—no guesswork required. → Market Responsiveness Inflation or demand spikes? Proactive price changes keep you competitive without alienating customers. So, how do you stay ahead? 👉 Leverage Technology: Adopt AI tools to fine-tune your pricing and uncover opportunities. 👉 Stay Flexible: Pricing isn’t static—test, learn, and adapt as markets evolve. 👉 Prioritize Value: Show customers why your pricing reflects the value you provide. Subscription models and dynamic pricing aren’t just innovations—they’re the future of profitability and customer loyalty. What’s your strategy for embracing these trends? Let’s dive into it!

Imagine two ecommerce brands. Both do $1 million in sales per month on average. Brand A: All one-off sales Brand B: Majority recurring subscriptions Now, let's pull the plug on marketing. No ads. No emails. Nothing. 12 months later... Brand A (One-off): 😟 Even if 25% of their last 12-month's customers ordered again over the year (generous assumption with no marketing), they're looking at maybe $3 million in sales for the year 😟 That's a 75% drop in annual revenue. Brand B (Subscription): Assuming 10% total monthly revenue churn (which is pretty high).. Month 1: $1,000,000 * 0.90 = $900,000 Month 2: $900,000 * 0.90 = $810,000 Month 3: $810,000 * 0.90 = $729,000 Month 4: $729,000 * 0.90 = $656,100 Month 5: $656,100 * 0.90 = $590,490 Month 6: $590,490 * 0.90 = $531,441 Month 7: $531,441 * 0.90 = $478,297 Month 8: $478,297 * 0.90 = $430,467 Month 9: $430,467 * 0.90 = $387,420 Month 10: $387,420 * 0.90 = $348,678 Month 11: $348,678 * 0.90 = $313,810 Month 12: $313,810 * 0.90 = $282,429 Total revenue for the year: $6,457,132 That's the power of recurring revenue. This is about a 46% reduction from the original $12 million annual revenue, but still more than double the one-off sales focused business. Plus - at the end of 12 months of no marketing, the subscription brand might still have a monthly recurring revenue of $282,429 Which business would you rather own when times get tough?