Jugnoo, a Chandigarh-based on-demand autorickshaw aggregator is slowly getting to be known as the Uber of the auto-rickshaw aggregation business in India. What started off as a pure auto rickshaw aggregator has today made its mark in the hyperlocal and food space as well. While Jugnoo Fatafat is its hyperlocal platform delivering groceries and other products, Jugnoo meals delivers freshly cooked food.
The startup was founded by Samar Singla and Chinmay Agarwal in 2014, with an aim to offer a network of auto-rickshaws targeting students, working professionals, and masses that are dependent on public transport for their daily conveyance. “Jugnoo has witnessed an exponential growth since its inception in November 2014. We started with providing our services in Chandigarh tricity and are currently rendering our services in 22 cities of India. With a user base of around 2 million, we handle about 30,000 transactions per day,” says Samar Singla, founder and CEO of Jugnoo.
According to Singla, the auto-rickshaw aggregation space is highly underutilised due to factors like price and route despite the fact that auto rickshaws are one of the inexpensive and predominant mode of public transport which can easily through crowded streets. “Jugnoo was started with a vision to combat 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,” adds Singla.
Recently this Chandigarh-based startup raised $5.5 million in its Series B round of funding led by Paytm with participation from Snow Leopard Technology Ventures. Prior to this, Jugnoo had raised $1 million from angel investors and $5 million in Series A round. Singla claims that the preparations for next round of funding have already started and the deal will be closed within a month from now.
Jugnoo claims to be the only startup in this space which focuses exclusively on auto-rickshaws.“We are pretty much the only player in the pure auto rickshaw aggregation business at the national level. Even if you look at Ola they have their autos running in only 5-6 cities and they are not focused enough, so I think its all about getting the focus right to scale up your business,” says Singla.
Jugnoo follows a commission based revenue model where it takes 10% commission from the drivers and a convenience charge from its customers. Going forward, Jugnoo aims to expand aggressively. “We plan to increase our presence to 25 more cities over the coming 6 months and 50 cities by the end of this year. We also plan to extend our reach to more countries in Asia,” adds Singla.