Hyperlocal delivery and auto rickshaw aggregator Jugnoo has raised $10 million in series B funding led by Paytm, a Paytm spokesperson has confirmed to MediaNama. Existing investor Snow Leopard and new investor Rocketship.vc also participated in the Series B round. Jugnoo plans to utilize the new funds in bettering driver efficiency and growing its base within its existing cities of operation.
The company had previously raised an undisclosed amount of funding from Paytm in November 2015. At that time Paytm had picked a 20% stake in the startup. In June 2015, Jugnoo raised $5 million in a series A round of funding from Snow Leopard with participation from Paytm. It had also raised $1 million from Rajesh Mathur (Junglee Flywheel), Vikas Taneja (Partner and MD BCG Group) and Kirloskar Brothers among others, in a seed round of funding.
Acquisition: In September 2015, Jugnoo had acquired 2 companies: a restaurant discovery app Bistro Offers and a mobile-only jobs services marketplace Yelo. Post acquisition, both companies continued to run as independent platforms.
What Jugnoo does
Jugnoo has tie ups with rickshaw drivers as logistics partners to offer three different services including Jugnoo Autos on Demand, Jugnoo Meals and Jugnoo Fatafat. Interestingly, the company mentions that it does not make money on auto rides, rather auto rides get it a logistics network and customer base, while hyperlocal deliveries make it money. At present, the company claims to have operations in 30 cities and 11 villages across the country.
The Jugnoo Autos on Demand app detects a user’s location, post which the user can request a rickshaw. Users can then track the rickshaw status on the map or call the driver directly to clarify issues. The app charges users Rs 20 as minimum charge, Rs 5/km and Rs 1/min for fare, with 50% higher rates for night times.
– The Jugnoo Meals app lets users order meals which it claims to deliver within 30 minutes. The food is prepared by in-house chefs at Jugnoo and offers a daily rotating menu. The platform is open Monday to Sunday, from 8am-10am (breakfast), 12noon-3pm (lunch) and 7pm-9pm (dinner).
– The Jugnoo Fatafat app lets users request deliver of any goods they need for stores around them. The app mentions users can order groceries, alcohol, ice-cream, flowers, gifts, medicines, food from restaurants, items from other shops. Jugnoo will deliver the item to the user, while all order above Rs 300 are delivered for free.
Note that Jugnoo also offers a Fatafat Merchant app, that lets merchants track orders coming their way. This seems to imply that users might not be able to order from any store, but only from those that the company has a tie-up with, similar to Grofers. Other than this, the platform offers a Jugnoo Drivers app which lets rickshaw drivers find their next assignment.