M-commerce giant Paytm returns to invest in the startup, along with new investor Snow Leopard Ventures
Global taxi-hailing giant Uber wound up its auto-rickshaw booking business in India within months of launching the service. While Ola and mGaadi are still going strong with their three-wheeler booking services, another player called Jugnoo jumped onto the bandwagon in late 2014.
Jugnoo, a Chandigarh-based startup, has just raised US$2.5 million in the second tranche of its Series B round of funding to prove that Uber’s decision to quit India was ‘premature’. This is at a time when some states like Delhi are taking stringent measures to check alarming air pollution by encouraging people to use the public transport system.
M-commerce giant Paytm, which led the first tranche of US$3 million in Jugnoo in November last year, has returned to invest again, along with new investor Snow Leopard Ventures.
The funds will enable Jugnoo to expand pan-India and launch new offices. It also looks to improve supply quality, incentives and rewards targeted towards driver welfare and performance improvement, in addition to scaling up marketing and advertising campaigns.
Founded by Samar Singla and Chinmay Agarwal, Jugnoo is targeting students, working professionals and masses that are dependent on public transport for their daily conveyance. Jugnoo has services in 22 cities and has 2 million users. With over 6,000 autos in its network, it sees 30,000 transactions per day, claims the firm.
“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.”
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