Operates in 4 cities, Gurgaon next.
By Raif Karerat
WASHINGTON, DC: Jugnoo, an Indian auto rickshaw-hailing company for both rides and local deliveries, has received $5 million in Series A funding from a consortium led by Snow Leopard Ventures and also includes mobile commerce firm Paytm and several returning investors from its angel round.
While several other companies offer auto rickshaw hailing for transport purposes, such as Uber, Ola, mGaadi, and PoochO, Jugnoo hopes to stand out by combining transit and on-demand delivery under one business model, founder Samar Singla told TechCrunch.
Launched in November, Jugnoo has 150,000 registered users in four small cities and completes 2,500 transactions a day. Of these, 30% are “hyperlocal” deliveries, according to the Economic Times of India.
Almost immediately after Jugnoo launched, the company noticed that many people were hailing auto rickshaws not for rides, but to deliver and pick up items, reported TechCrunch. In response, it launched two new services—Jugnoo Meals and Jugnoo Fatafat, which focus on restaurant orders and on-demand deliveries from local stores, respectively.
Singla believes Jugnoo will be able to set itself apart from the competition by offering a better value proposition for drivers and repeat customers.
“Drivers because they want to work with a company that is focuses on auto rickshaws instead of using them as a backup,” Singla told TechCrunch. “There are ten times more auto rickshaws in India so we can handle supply and demand much better. People who want the quickest and cheapest means to get from point A to point B will choose us, but if a person wants an air-conditioned car he or she will probably go for an Uber.”
The Chandigarh-based firm currently operates in four cities: its home turf, Ludhiana, Amritsar, and Jaipur. The startup intends to use its new injection of capital to launch in a new city each month for the immediate future, with the next site being Gurgaon, and also to enhance its technology platform.