Paytm Books $5-m Ride with Jugnoo in Series-B Round
New Delhi: Ecommerce and digital wallet firm Paytm has invested another $5 million in Jugnoo, leading a series-B round of fundraising in the auto rickshaw aggregator and hyperlocal delivery firm. The Chandigarh-based startup has raised $10 million in this round from investors including Snow leopard, an existing investor, and venture capital firm Rocketship.vc.
“With further infusion of funds, Jugnoo will be equipped to scale up its operations across the country and Paytm is happy to be a part of its growth story,” said Kiran Vasireddy, senior vice president of Paytm.
Vasireddy said that Jugnoo has displayed potential in creating disruption in the public transportation ecosystem, its auto hailing service has picked up well and it is witnessing speedy growth.
Jugnoo, which currently operates in 30 cities and 11 villages, has ramped up its services quickly in the past few months. It faces stiff competition from rivals including SoftBank-backed Ola. Earlier this month, Ola launched auto bookings in 12 additional cities, increasing its total count to 24 cities in the country.
With this investment, Paytm has got exposure to online aggregator business as well. The company already has operations in ecommerce and digital wallet businesses and has also been awarded a payment bank licence by the Reserve Bank of India. Paytm had coinvested in Jugnoo in a $5-million round in June last year in which Snow Leopard Technology Ventures had also partici- pated.
Jugnoo raised $3 million in the first tranche of this round and added $2.5 million in the second tranche. In the second part of the series B funding, $5 million has come from Paytm and the remaining $5 million from other investors.
Samar Singla, CEO of Jugnoo, said that the company will invest these funds in improving the driver efficiency and increasing the number of cities that it operates in. “We have been receiving a phenomenal response from drivers who are now readily adopting technology as a means of increasing their daily earnings. And with the kind of impact we have been able to make at the grass-roots, I am sure we have a long way to go,” he said. Jugnoo has developed a network of about 10,000 auto-rickshaw drivers across India.