Jugnoo, the autorickshaw aggregator and hyperlocal delivery platform, has raised $10 million in Series B funding led by e-commerce and m-commerce platform, Paytm. The company will use the funds to scale up its operations.
This is the third tranche of investment from the Alibaba-backed Paytm in Jugnoo. While Paytm has invested $5 million in this round, existing investors- Snow Leopard and Rocketship Venture Capital (a new investor) have put in another $5 million.
Paytm had said in September last year that the company had earmarked $150 million to be invested in start-ups over a period of 18 months.
The competition in the autoricksaw aggregation segment is getting stronger by the day. Just last week, cab-aggregator Ola announced its plans to expand operations in the autorickshaw segment to increase its presence in 24 cities. It’s rival Uber too has operations in two cities- Bhubaneshwar and Coimbatore, and both the companies are focusing on tier-2 and tier-3 cities to tap into this segment.
Kiran Vasireddy, senior vice president, Paytm, said, “Jugnoo has showcased tremendous potential towards creating disruption in the Indian public transportation eco-system. Their Auto hailing service has picked up phenomenally well and they are witnessing incredible growth M-o-M (month-on-month) basis. With further infusion of funds, Jugnoo will be equipped to scale up its operations across the country and Paytm is happy to be a part of its growth story.”
At present, Jugnoo operates in 30 cities and 11 villages across the country. Jugnoo has a network of around 10,000 autorickshaw drivers across India. They also have women auto drivers in Nagpur, Ahmedabad and Noida.
Co-founded by Samar Singla and Chinmay Agarwal in November 2014, the company claims to clock about 10,000 rides a day in the Delhi -NCR and about 30,000 rides in all across 30 cities.