Chandigarh based Autorickshaw aggregator Jugnoo has closed its $5.5 Million Series B round led by PayTM, along with the participation of Snow Leopard.
Earlier, Jugnoo has raised $3 million led by online marketplace Paytm with participation from Freecharge CEO and founder Kunal Shah, adding $2.5M in the second tranche, making it a total of $5.5 M for the Series-B round.
Vijay Shekhar Sharma, Founder & CEO of Paytm, said,
“Since its inception, Jugnoo has been showing a very promising growth. With its focussed approach and high user engagement, they have succeeded in understanding the auto-rickshaw space really well.”
Jugnoo was founded in 2014 by Samar Singla and Chinmay Agarwal. It is a hyperlocal on-demand multi-service provider which employs autorickshaw as its logistic partners. The startup focusses on transportation and delivery services. It runs three apps – Jugnoo Autos, Jugnoo Meals, and Jugnoo Fatafat.
The funds will be used for planning and executing a pan-India expansion, launching new offices, improving supply quality, incentives and rewards targeted towards driver welfare and performance improvement, scaling up marketing and advertising campaigns.
Jugnoo currently operates in 22 cities with a user base of about 2 million and 30,000 transactions per day. The company plans to venture into 40 new cities by the end of 2015.
Jugnoo competes with its bigger rival Ola which has close to 75,000 autos on its platform. The company had raised a Series A funding of $5 million led by Snow Leopard Ventures and Paytm in May, last year. PayTM, which led this funding round, had also invested $10 million a couple of months ago in Jugnoo.
Jugnoo has acquired restaurant discovery app, Bistro Offers, and mobile only services marketplace yelo. Bistro Offers is a restaurant discovery app and yelo is a Bangalore based mobile only services marketplace. The startup also delivers groceries and other stuff via auto-rickshaw.
Samar Singla, Co-founder and CEO, Jugnoo, said,
“We see great prospects lined up for Jugnoo with this funding. Our growth is improving with each new city expansion. We will invest this funding to increase our presence to 25 more cities over the coming six months and provide access to the remotest corners of the country.”
Chris Kolenaty, Founder Snow Leopard Ventures, said,
“Jugnoo is providing a perfect solution to those dependent on public transport for their daily conveyance. By increasing auto utilization and bringing structure into this space, they have transformed the market completely. Their’s is an offering that makes complete practical sense in today’s scenario.”