Jugnoo, an India based auto-rickshaw aggregating startup has raised $2.5 Million in the second tranche of Series B fund led by PayTM.
Started in late 2014, Jugnoo is present in over 22 Indian cities with over 2 million users. Recently, Jugnoo announced that they had over 6000 partner autos and the startup is going quite strong in aggregating one of the biggest segments in India’s public transportation system.
Talking about the competition in India, Jugnoo faces competition from Ola and mGaadi across the country. While Ola has been pretty strong ever since the launch, Uber did give up months after launching the service for autos and Jugno just seems to be proving that the move by Uber was pretty immature, at least at a time when many Indian states governments are encouraging their residents to depend more on the public transport.
PayTM was the lead investor in the first tranche of Series B funding for Jugnoo in November 2015 and this time again, the Indian mCommerce giant has joined as the lead investor.
With the raised funds, the startup is aiming to increase its pan india presence by launching more offices across cities and getting more drivers on board. As mentioned earlier, Jugnoo is currently present in 22 cities with over 6000 vehicles as partners. Jugnoo plans to offer better incentives to drivers along with launching some welfare schemes as well as market their services with the raised investment.
“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,” said Samar Singla, Co-founder and CEO.
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 utilisation and bringing structure into this space, they have transformed the market completely. Theirs is an offering that makes complete practical sense in today’s scenario.”
More to follow…