@girish there are lots of open source projects that offer paid/proprietary services out there. You can point to Ubuntu or Android as very popular ones.
As someone who has contributed (albeit only a few small patches) I'm quite surprised to see an attempt to change the license. I'm also not sure that the license change is legal. I am not a lawyer, but my understanding of AGPL would be that since there was no CLA (or was there? I don't remember singing one for Cloudron) signed by contributors, each contributor owns the rights to their patches. To change the license, you would need approval by each contributor. If those patches are still AGPL, then any additional changes to the code base since then must also still covered by AGPL in order to be in compliance.