Online autorickshaw aggregator Jugnoo, which recently started web booking, has launched a grocery delivery service called Grocery in Chandigarh. The service will be available on the Jugnoo app. The company claims to have tied up with local wholesalers in Chandigarh and has 3,500 stock keeping units (SKUs) for a next day delivery for orders placed between 4-8pm.

It plans to launch a store called Express in December, from where it will deliver groceries in 2 hours of placing an order. It is unclear if this store will be an online or offline one. Jugnoo will also tie up with brands for grocery delivery.

In a press statement, Samar Singla, founder and CEO of Jugnoo said, “This additional category was a profitable move, as this adds to our overall order size. As a matter of fact, grocery in spite of being a low margin business, has been unit economics profitable for us from day 1 due to its strategic launch after Fresh.”

Grocery has been introduced after Jugnoo launched ‘Fresh,’ a fruits and vegetables delivery service through its autorickshaws. Jugnoo claims that Grocery deliveries will happen by auto drivers in their free time. The company plans to grow its services in Chandigarh tricity organically and expand to 40 cities with the same model. Out of these 40 cities, Jugnoo will expand to 6 cities by June 2017.

Fatafat meal delivery service

In August, Jugnoo started making food deliveries via its Fatafat app in Chandigarh, Panchkula and Mohali. Jugnoo had launched the Fatafat service in March 2015 which was operational till November 2015. At the time, it claimed to have 200,000 registered users and carry out 1,000 orders daily across 4 cities. Fatafat was relaunched in August this year.

In June this year, Jugnoo launched its on-demand B2B logistics service Dodo deliveries in Chandigarh tricity, with plans to expand to Indore, Gurgaon and Noida. At the time, the company claimed that Dodo was doing 200 deliveries daily. In April, the company raised $10 million in series B funding led by Paytm, Snow Leopard and Rocketship.vc.

*Edit: We’ve corrected the report to reflect that Jugnoo’s grocery service has actually launched in Chandigarh as opposed to Delhi, as we’d reported before.