There is an upward trend in subscription-based models everywhere and India is moving in the same direction. Places like Hotstar, Zomato Gold and bbdaily (BigBasket) are showing that having subscription services can work not only for themselves but also make the company more profitable.
A major advantage is that with a subscription model, you get regular income and can develop lasting relationships with your clients. Since starting a successful subscription-based company means making recurring payments from customers, it’s also about providing value all the time.
I will explain the main things you need to do to start your profitable subscription startup in India with examples and information for the local market.
- Be familiar with the idea of a subscription model.
A subscription model makes it possible for customers to get products or services regularly by paying a regular fee. Here in India, food, groceries, health, education and personal care are quickly joining the services offered by e-commerce.
Examples of well-known methods are:
Companies can offer grooming boxes as subscription services (like The Man Company makes available).
Service subscriptions give you constant access to instructors for learning purposes (WhiteHat Jr. is an example).
Some content is available through subscription (such as Hoichoi for Bengali lovers of entertainment).
You can now try sleep solutions from Wakefit such as their mattress trials which are on a utility-based subscription.
Go with a model that relates to your idea and suits the constant needs of your customers.
- Find a specialty that many people need POC for.
Being successful in the subscription world requires continuously popular products. Make sure your business addresses a common problem or fulfills a necessary task each day/week.
Some successful Indian niches are:
Health and wellness (e.g., Cure.fit provides fitness and health coaching)
Essentials like milk, bread and groceries are delivered to my door every morning (by bbdaily).
Educating kids (for example, FlintoBox delivers activity kits for children)
Bet on markets that are very interested in ease, constant quality or being treated individually.
- Check to see if your idea is possible before financing further.
Do some testing first to confirm your idea works well. It’s necessary to check if people want what you’re offering and if they are ready to pay for it.
How you go about validating in India:
Design a simple webpage to explain what you are planning to do.
Target people in your niche with ads on Facebook or Instagram using a low budget.
Give a special discount to anyone who registers early.
Survey potential users by using online tools like Typeform and Google Forms.
A good user experience lets you know you’re heading in the right direction.
- Make a basic version of your product called a Minimum Viable Product (MVP).
Start lean. Do not try to make everything perfect. The MVP version should provide the main value but contain just enough features to bring in early customers.
For example:
Begin with a small menu of 2–3 menu items if you are starting a food box company like Tiffinly.
Begin by putting out just one course module and build from that.
If supplying selected products, handle your deliveries manually until your business gets bigger.
You can handle subscriptions more easily using Shopify India, Instamojo or WooCommerce with Razorpay.
- Make onboarding easy and friendly.
Make it easy and safe for customers to sign up the first time. Indians are not always confident about making online payments, so you should make sure that:
A process that makes it easy for users to sign up on a mobile device
Open and clear pricing as well as simple cancellation
Local methods of payment are accepted (UPI, Paytm, Razorpay)
Consider letting users use the service for up to a week at little or no cost to gain their trust and ease coming in.
- Set Up the Proper Pricing
Getting your prices right can determine the success of your business. It needs to be affordable by customers but still make a profit.
Harvesting success, Indian startups apply original pricing tactics.
Zomato Gold lets customers save a lot of money by purchasing annual plans upfront.
Cult.fit lets members choose between online, offline or hybrid pricing plans.
Scriberr (a subscription box business) gives customers bundle discounts and prepaid deals.
Choose between monthly, quarterly or family subscription plans and study what people in your audience enjoy most.
- Remember Retention Is Just As Important As Acquisition
With so much competition in India, having users is just the beginning, retaining them is key to building a powerful brand.
Here’s how:
Be dedicated to delivering value all the time (e.g., prompt delivery and reliable service).
Pay attention to what guests say and address their comments (Indians like when hotels attend to their individual preferences).
Give loyal consumers special deals or priority in buying.
Remind yourself via WhatsApp or SMS (a popular and proven method in India).
Happy customers share their good experience which has substantial worth.
- Try marketing methods that give good value for your money.
You don’t have to spend huge amounts just to market your subscription startup in India. Start smart:
Promoting products on Instagram or YouTube using micro-influencers
Content marketing using blogs in local languages or making YouTube shorts
Referral programs where users get credit for bringing friends on board (worked very well for Meesho).
Put up ads on Google Local and use WhatsApp as a marketing platform
Regularly check your costs per acquisition (CPA) and the expected value a customer will bring over time (CLTV).
Final Thoughts
India’s number of digital consumers is increasing swiftly and more people want to use subscription services. Focus on providing the same quality, easy delivery and affordable prices no matter if you offer yoga, tiffin or grooming kits.
Begin with modest resources, maintain your priority and improve based on advice from users. If things are done well, your startup might become a subscription success story in India.