Chandigarh based auto hailing and hyperlocal delivery startup Jugnoo raised USD 10 million in Series B funding. The funding was led by India’s largest mobile payments and commerce platform Paytm which invested $5 million in Jugnoo. The rest was invested by Snow leopard, an existing investor, and a venture capital firm Rocketship.vc.
Jugnoo was launched in November 2014 by Samar Singla and Chinmay Aggarwal. Having started from Chandigarh, Jugnoo is currently present in 30 cities of India. Jugnoo connects passengers wishing to travel from one point to another within a particular city.
Image Source: Jugnoo Twitter Handle
Auto rickshaws are popular in India because they are inexpensive and easy to move through crowded streets. But have remained highly underutilized due to the inefficiencies prevalent in the conventional hailing procedure like price, route etc. Jugnoo was started with a vision to overcome these roadblocks by bringing structure into this space, aggregating auto-rickshaws via technology, thereby, making the whole process of taking a ride more transparent and convenient for both the driver and user.
The company said that they will be investing these funds in improving the driver efficiency and increasing the number of cities that it operates in. Jugnoo has a network of around 10,000 auto drivers across India and they have women drivers in Noida, Nagpur and Ahmedabad.
Jugnoo has earlier raised USD 5 million funding from Paytm and Snow leopard Ventures. Recently Jugnoo has clocked 10,000 rides a day across Delhi NCR region which is an all time high for them. Jugnoo is competing with Ola who has auto ride hailing in their app.
Jugnoo’s app has all the safety features like In app customer support, emergency features, auto location tracking feature and single tap booking & cancellation. More than 2.3 million people are using Jugnoo mobile app which is available in Android, iPhone and Windows platforms.
Jugnoo works on a commission based revenue model where it takes 10% commission from the drivers and a convenience charge from the customers. [Source: Financial Express]
With its aggressive growth strategy, Jugnoo plans to expand to other cities in India soon. The users can pay using Jugnoo money, Paytm or as cash to the driver.
Autos are the cheapest mode of transport in India. Especially in Tier 2 cities and rural areas, autos are the most preferred mode of transportation. Even if Jugnoo is competing with Ola and Uber, we think that they can provide value as Jugnoo is more concentrated on autos only. The startup has set a target of reaching 10 lakh rides a day and increasing its presence to 100 cities across India.