Business Model & Monetization

Multiple diversified revenue streams with strong unit economics.

Value Creation & Capture Framework

How Muziclly creates tangible value for every stakeholder and effectively captures it.

Value Flow

👥
User Needs
💻
Platform
🎹
Tools & Content
🎯
Outcomes
💰
Revenue
Stakeholder Value Created Delivery Mechanism Revenue Capture
Students Structured learning, Certification, Community Live Classes, App, Events Subscription + Exams
Teachers Guaranteed students, Income stability Student Allotment System Allotment Plans
Freshers Career launch, Teaching skills Training & Placement Training Fees
Professionals Industry-ready technical skills Audio Engineering Program Course Fees
Community Networking, Performance opportunities App, Social Feed, Contests App Plans + Events

Consolidated Revenue Model

A diverse portfolio of revenue streams ensuring stability and scalability.

Monetization Pillars Summary

Revenue Stream High Margin Recurring Scalable
Student Subscriptions Yes Yes Yes
Teacher Allotment Plans Yes Yes Yes
Training & Certifications Yes No Yes
Audio Engineering Yes No Medium
App Usage Plans Yes Yes Yes
Events & Competitions Variable Seasonal Yes

Detailed Revenue Breakdown

Revenue Stream Model Revenue Range
1. Student Subscriptions 3-month plans ₹7,999 - ₹25,999
2. Teacher Allotment Plans 3 months to Lifetime ₹999 - ₹9,999
3. Training Programs One-time fee ₹9,999 - ₹19,999
4. Audio Engineering One-time fee ₹49,000
5. Certification Fees Per certification ₹999 - ₹2,499
6. App Usage Plans Monthly Subscription ₹199 - ₹999/mo
7. Events & Sponsorships Entry fees + brand deals Variable

Key Metrics

₹1,800
Avg. Revenue Per Student/mo
18
Target LTV months
₹32,400
Student Lifetime Value
₹2,000
Target CAC

LTV:CAC Ratio

16:1

Our target LTV:CAC ratio of 16:1 (₹32,400 ÷ ₹2,000) indicates a highly efficient growth model. EdTech benchmarks typically target 3:1 to 5:1. This superior ratio is driven by low CAC through organic community growth, high retention via social features, and multiple monetization touchpoints.

Cost Structure Analysis

Optimized for high gross margins and scalable operations.

Fixed Costs (Low)

Fixed
  • Platform Development: Core engineering team & infrastructure.
  • Content Production: One-time creation of curriculum & M-Lab tools.
  • General Admin: Lean core team operations.

Variable Costs (Managed)

Var
  • Teacher Payouts: Directly linked to revenue (managed via allotment fees).
  • Marketing (CAC): Programmatic & community-driven.
  • Cloud Usage: Auto-scaling infrastructure costs.

Working Capital & Cash Flow

Predictable inflow cycles with managed outflows ensure healthy liquidity.

Cash Flow Cycle

📥
Day 1: Inflow
Prepaid Subscriptions
🏦
Day 1-30: Float
Capital held by Muziclly
📤
Day 30+: Outflow
Teacher Payouts

Result: Positive working capital cycle. We collect before we pay.

Why Cash Flow Is Predictable

  • ⏱️
    Prepaid Subscription Model
    100% of student fees are collected upfront (3-month blocks), ensuring immediate liquidity.
  • 🛡️
    Low Refund Exposure
    Strict refund policies and trial classes minimize chargeback risks.
  • 📅
    Managed Payout Cycles
    Teachers are paid monthly based on completed classes, allowing a 30-day cash float.
  • 🌊
    Diversified Inflows
    Daily inflows from Training Programs & Certifications balance subscription cycles.

Pricing Philosophy

1

Accessibility First

Entry-level pricing 50-70% below traditional lessons to maximize reach.

2

Value Laddering

Clear upgrade paths with tangible benefits at each tier.

3

Teacher Fairness

Competitive revenue share that attracts and retains quality teachers.

4

No Hidden Fees

Transparent pricing builds trust and reduces churn.

Expansion Opportunities

B2B/School Licenses

Enterprise licensing for schools, academies, and institutions with volume pricing.

International Markets

Localized pricing for Southeast Asia, Middle East, and Africa markets.

Marketplace

Commission on instrument sales, sheet music, and digital content marketplace.