Jugnoo, the PayTM backed on-demand auto rickshaw aggregator, has today closed its $5.5 Million Series B round led by PayTM, along with the participation of Snow Leopard.
Earlier, Jugnoo had raised $3 million in the first tranche of this round, adding $2.5mn in the second tranche, making it a total of $5.5 mn for the Series-B round.
Vijay Shekhar Sharma, Founder & CEO of Paytm, said,
Since its inception, Jugnoo has been showing a very promising growth. With its focussed approach and high user engagement, they have succeeded in understanding the auto-rickshaw space really well.
With fresh cash coming in, it is now planning to expand its services to cover almost all regions of India, launch new offices, improving supply quality, incentives and rewards targeted towards driver welfare and performance improvement, scaling up marketing and advertising campaigns.
Founded in November 2014 by Samar Singla and Chinmay Agarwal, Jugnoo is an on-demand auto rickshaw app, which connects passengers wishing to travel from one point to another within a particular city. The company has extended its services in 22 cities of the nation, with over 2 million users and 30,000 transactions per day.
PayTM, which led this funding round, had also invested $10 million a couple of months ago in Jugnoo. The startup also delivers groceries and other stuff via auto-rickshaw. Prior to that, the company had raised $5 million in a Series A round.
Samar Singla, Co-founder and CEO, Jugnoo, said,
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.
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 utilization and bringing structure into this space, they have transformed the market completely. Their’s is an offering that makes complete practical sense in today’s scenario.