Daino

Daino is an AI-based foreign language tutor that completely replicates the teaching approach of a real teacher.

The fully-fledged MVP, server-side and client-side, is ready for use. Currently, the project is being promoted on YouTube and TikTok through our own efforts. There are no sales or active users at this time.

Our typical customer is 16–45 years old, digitally active, motivated to improve their language skills for work, study, travel, or personal growth.
They live in countries with high demand for English or other global languages — Europe, Latin America, Asia, and CIS.
They prefer mobile and online learning formats and are already familiar with tools like Duolingo, Preply, or YouTube tutors.

Market size:
Daino operates at the intersection of three fast-growing global markets:

1) ESL Market — $60B+ annually: 1.5 billion people study English worldwide.
2) Global EdTech Market — projected $404B by 2025: Massive shift toward online learning.
3) AI Education / AI Tutors — fastest-growing segment (32–36% CAGR): AI-enabled personalized learning is becoming the default standard.

Additionally, Daino supports learning 20 top world languages, which expands the market far beyond ESL and taps into a broader global audience.

Even a small penetration of these markets represents tens of millions of potential users. The demand is growing steadily, and the transition from human tutors to AI tutors is accelerating, making this one of the most attractive segments in EdTech today.

The primary customer of Daino is a person who wants to learn a foreign language faster, more effectively and at an affordable price — but is dissatisfied with existing solutions.Today’s language-learning market has three major problems:

1) High cost of human tutors.
Individual lessons cost $15–40 per hour, making long-term learning financially inaccessible.
2) Low efficiency of apps like Duolingo or Babbel.
They offer fixed lessons, lack deep personalization, and cannot adapt to a learner’s mistakes in real time.
3) Lack of consistent practice.
Most learners do not have anyone to practice speaking or writing with daily. As a result, students lose motivation and stop learning after 2–3 weeks.

Daino solves these problems by providing a fully personalized AI tutor available 24/7, offering real conversational practice and adapting to each user’s progress.

Daino is a language learning platform in which a personalized AI teacher acts as a live tutor in text and voice format. Main components of the product:

1) AI tutor (text + voice).
Detailed theory with examples, practice with explanations of errors, homework, the opportunity to practice speaking in a voice dialogue in real time

2) A trial lesson with level assessment.
Each user gets to know their AI teacher, takes a test and sees how the learning process works.

3) Flexible tariff plans based on the time of use.
The user pays not for a monthly subscription, but for hours of text or voice communication in the chat. Thus, we give the user full control over their learning process

4) A complete learning ecosystem:
- structured lessons
- homework with automatic checking
- personal dictionary
- skill dashboard
- achievements and progress
- support for 20 languages ​​for learning and the user's native language

5)Voice mode with speech recognition and generation.
The user can simulate real dialogues, as with a real foreigner.

The entire product is fully ready and working: frontend, backend, payments, analytics, lesson system, profiles and AI logic.

Our direct competitors are AI-powered language-learning tools that combine chat-based practice with lessons. The main players are:
1) Duolingo - the largest language-learning app, ~35% market share in mobile EdTech. Strong brand, but limited conversational depth and no real-time AI tutor.
2) Elsa Speak - ~3% market share; focuses only on pronunciation, no full tutoring model.
3) TalkPal / Speak.ai - small but growing; offer AI dialogs, but with limited languages, no deep learning logic, and significantly higher usage costs.

Indirect competitors (current substitutes):
1) Human tutors - $20-40/hour; expensive and not scalable.
2) Traditional apps (Memrise, Busuu, Babbel) - structured content but no personalized AI-driven teaching.
3) YouTube / free videos - widely used but non-interactive and non-adaptive.

The market is large and fragmented: no single AI-tutor platform dominates, and existing apps are either expensive, limited, or non-interactive. This leaves a gap for a scalable, multi-language 24/7 AI tutor like Daino.

Daino has clear differentiators that make it difficult to replicate:

1)True AI tutor, fully personalized - the system adapts to the user’s level, tracks progress, provides interactive exercises, checks homework, and corrects mistakes in real-time. Competitors either focus only on content delivery or limited conversation.
2) Multi-language support (20 languages) - users can study in their native language, which significantly improves accessibility and engagement. Most competitors support 5-6 interface languages.
3) Flexible usage-based subscriptions - users pay for the time they spend in chat and voice sessions. Unlike flat monthly subscriptions, unused time does not expire. This makes learning more affordable and measurable.
4) Integrated voice conversations - real-time voice dialogues with AI tutor, unavailable in most apps or available at much higher cost.
5) Scalable and 24/7 availability – fully digital platform without limitations of human tutors.

These advantages create a high entry barrier for competitors because replicating the combination of AI logic, multi-language support, flexible usage model, and real-time voice is technologically complex and costly.

Our pricing structure consists of three subscription tiers:
1) $9.90 - 15 hours of text interaction + 60 minutes of voice dialogue
2) $19.90 - 35 hours of text + 180 minutes of voice
3) $34.90 - 60 hours of text + 360 minutes of voice

Because the AI tutor relies heavily on OpenAI APIs, approximately 60% of revenue covers AI inference costs (text generation, evaluation, translation, voice), while 40% remains as gross margin, which steadily grows as we optimize prompts and introduce caching.

The average revenue per paying user (ARPU) is estimated at $18.5/month, based on expected plan distribution.

Projected Revenue (5-year outlook)
Year Paying Users Revenue
Year 1 2,000 $444k
Year 2 10,000 $2.2M
Year 3 35,000 $7.7M
Year 4 80,000 $17.7M
Year 5 150,000 $33.3M

Why these numbers are realistic:
- Conversion from free to paid for EdTech AI apps is 2–4%, consistent with Duolingo, Elsa Speak, Lingoda.
- To achieve 150k paying users, the product would need only ~4–6M free users globally over 5 years.
- The offering is priced 10–20× cheaper than private tutoring, while covering 70–80% of the learning needs.

Our business model is based on time packages with three tariffs:

1) $9.90 - 15 hours text + 60 min voice
2) $19.90 - 35 hours text + 180 min voice
3) $34.90 - 60 hours text + 360 min voice

The main cost driver is AI usage (OpenAI API), which accounts for about 60% of revenue per user. Other expenses - marketing, hosting, and operations - are minimal, allowing for ~20% net margin even at early stages.

Revenue comes from:
1) Subscriptions (core MRR)
2) Add-on voice minutes (planned)
3) Future corporate packages

This model works because users already pay $20–40 per hour to human tutors, while we offer significantly more practice time at a fraction of the cost. This ensures strong value, scalable margins, and predictable recurring income.

The investment will be primarily used to accelerate global growth and scale our AI-powered language learning platform. Key areas of allocation include:

1) Marketing and user acquisition (≈60%) – campaigns, ads, influencer partnerships to attract early paying users globally.
2) Product development and AI improvements (≈25%) – enhance AI logic, integrate voice recognition, improve mobile app, add adaptive learning features.
3)Infrastructure and hosting (≈10%) – maintain and scale servers (Render, Vercel) to ensure 24/7 availability.
4) Operational support (≈5%) – minimal team support, legal, and compliance.

This allocation ensures fast adoption, continuous product improvement, and scalable growth while keeping costs efficient.

We are not yet ready to define a specific equity share. The exact terms will be discussed during meetings or negotiations with potential investors.

Key risks for Daino include:

1) Competition risk – existing language apps or new AI tutors may try to replicate features. To mitigate, we focus on multi-language support, flexible usage model, and deep AI logic that is hard to copy.
2) Technology risk – dependence on third-party AI APIs (OpenAI). Any pricing changes or downtime could affect costs and availability. We plan partial future migration to custom AI models.
3) Market adoption risk – users may prefer traditional apps or human tutors. Mitigation: free trial lessons, clear value proposition (more hours for less money), 24/7 availability.
4) Economic and global risks – crises, currency fluctuations, or changes in online spending may affect growth. Diversification across global markets reduces dependence on any single region.
5) Regulatory risk – potential changes in data privacy or AI regulation. We comply with GDPR and local laws from the start.

Overall, risks exist but are manageable with a phased, global launch and continuous product improvement.

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